Corless Company Processes Copper Ore into Two Products,C and U

question 97

Multiple Choice

Corless Company processes copper ore into two products,C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Corless Company plans to produce 40,000 pounds of Product C and 20,000 pounds of Product U from 60,000 pounds of ore.Product C sells for $30 per pound and Product U sells for $40 per pound.Assume the company uses the physical-units method of allocating joint costs.What amount of joint costs is allocated to Product C?

• A) $0
• B) $200,000
• C) $600,000
• D) $800,000

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Definitions:

Financing Activities

Actions that result in changes in the size and composition of the equity capital or borrowings of the company, as reported in the cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.

Long-Term Liabilities

Refers to debts or obligations that are due in over a year's time, including loans, bonds payable, or lease obligations.

Cash Dividends

A distribution of profits by a corporation to its shareholders in the form of cash.