Answer the Following Questions Using the Information Below:
Netzone Company $\text { Direct materials processed: } 200 \mathrm{kgs} \text { (Both standard and premium chips weigh } 10 \text { grams each) }$

question 71

Multiple Choice

Answer the following questions using the information below:
Netzone Company is in semiconductor industry and fabrication of silicon-wafer chips splits off two types of memory chips, Standard and Premium. The following information was collected for last quarter of the calendar year:
$\text { Direct materials processed: } 200 \mathrm{kgs} \text { (Both standard and premium chips weigh } 10 \text { grams each) }$
$\begin{array}{lll}\text { Production: } & \text { Standard } & 10,000 \text { chips } \\& \text { Premium } & 6,500 \text { chips } \\\text { Sales: } & \text { Standard } & 9,500 \text { at } \$ 100 \text { per chip } \\& \text { Premium } & 6,000 \text { at } \$ 170 \text { per chip }\end{array}$ The cost of purchasing 200 kgs of direct materials and processing it up to the splitoff point to yield a total of 16,500 chips of good products was $1,950,000.
Beginning inventories totalled 100 chips for Standard and 50 chips for Premium. Ending inventory amounts reflected 100 chips of Standard and 50 chips of Premium. October costs per unit were the same as November.
-When using a physical-volume measure,what is the approximate amount of joint costs that will be allocated Premium chips?

• A) $768,182
• B) $1,170,000
• C) $975,000
• D) $780,000

Understand different levels and types of business friendships and relationships.

Understand the concept and importance of customer relationship marketing in sales.

Identify and explain the various levels of business relationships.

Describe the elements and management of a sales call.

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Definitions:

Market Value

The ongoing rate at which an asset or service is offered for buying or selling in a market.

Note Payable

A written promise to pay a specified sum of money, plus interest, to a creditor at a future date.

Cash

A form of currency that includes coins and paper notes, used by companies to conduct transactions or stored as part of their liquid assets.

Acquisition

The process of obtaining control of another corporation, either through purchase or merger.