Answer the Following Questions Using the Information Below:
Torid Company

question 46

Multiple Choice

Answer the following questions using the information below:
Torid Company processes 17,500 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $5 per gallon and Product Y, the main product, sells for $150 per gallon. The following information is for December:
$\begin{array}{lccc}&\text { Production } & \text { Sales } & \begin{array}{c}\text { Beginning } \\\text { Inventory }\end{array} & \begin{array}{r}\text { Ending } \\\text { Inventory }\end{array}\\\text { Product X: } & 5,375 & 5,300 & 0 & 75 \\\text { Product Y: } & 9,975 & 9,990 & 25 & 10\end{array}$ The manufacturing costs totalled $25,000.
-Under production method,Product X NRV would be offset against the costs of Product Y by ________.

• A) $26,500
• B) $26,875
• C) $50,000
• D) $48,125

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Definitions:

Disinterested Directors

Board members who do not have a personal or financial interest in a corporate decision, ensuring unbiased governance.

Conflict of Interest

A situation where a person's private interests might influence or appear to influence their professional judgment or actions, potentially leading to ethical issues.

MBCA

Stands for the Model Business Corporation Act, a template for state statute that provides a standard for corporate law.

Closely Held Corporations

Corporations that have a small number of shareholders and whose shares are not publicly traded.