Answer the Following Questions Using the Information Below

question 118

Multiple Choice

Answer the following questions using the information below:
The Berkel Corporation manufactures Widgets, Gizmos, and Turnbols from a joint process. June production is 5,000 widgets; 8,750 gizmos; and 10,000 turnbols. Respective per unit selling prices at splitoff are $75, $50, and $25. Joint costs up to the splitoff point are $187,500.
-If joint costs are allocated based upon the sales value at splitoff,what amount of joint costs will be allocated to the widgets?

• A) $30,882
• B) $66,176
• C) $44,118
• D) $77,206

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Definitions:

Accounts Payable

Short-term liabilities of a business which are owed to suppliers for goods and services purchased on credit.

Voucher

A document or record that verifies a transaction and authorizes the payment or receipt of funds.

Journal

A record where all financial transactions are initially entered in chronological order.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.