Reference: 22_01 Joint Products a and B Are Produced in a Single

question 82

Multiple Choice

Reference: 22_01
Joint products A and B are produced in a single operation from Material M. Three hundred gallons of Material M, costing $450, produced 200 gallons of Product A, selling for $2 per gallon, and 100 gallons of Product B, selling for $6 per gallon.
-If the $450 cost of the 300 gallons of Material M were to be allocated to the joint products in proportion to the number of gallons of each product produced,Product A's share would be:

• A) $0
• B) $180
• C) $225
• D) $300
• E) $450

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Definitions:

Markdown

The reduction of the selling price of goods or services, often to clear old stock or respond to decreased demand.

Rubber Boots

Footwear made of rubber, designed to be waterproof, typically used during rainy weather or in wet environments.

Mark-up

A premium added to the cost price of items to compensate for fixed costs and profit.

Dog Kibble

Small, dry pieces of food formulated for dogs' nutritional needs.