Netzone Company Is in Semiconductor Industry and Fabrication of Silicon-Wafer

question 57

Multiple Choice

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:

The cost of purchasing 300 kgs of direct materials and processing it up to the split-off point to yield a total of 18,800 chips of good products was $2,030,000.Beginning inventories totalled 150 chips for Standard and 80 chips for Premium.Ending inventory amounts reflected 150 chips of Standard and 80 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? (Round intermediary percentages to the nearest hundredth. )

• A)$734,251
• B)$714,469
• C)$1,015,000
• D)$669,106

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Definitions:

Operating Income

The profit realized from a business's core operational activities, excluding deductions of interest and taxes.

Telescope Manufacturing

The industry involved in designing, producing, and distributing optical telescopes, equipment used to observe distant objects by collecting electromagnetic radiation.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a series of periods to identify trends.

Net Sales

The total revenue from sales of goods or services, minus returns, allowances, and discounts.