Torid Company Processes 18,025 Gallons of Direct Materials to Produce

question 120

Multiple Choice

Torid Company processes 18,025 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 $170 per gallon.The following information is for December:

The manufacturing costs totalled $26,000.
Under production method,Product X NRV would be offset against the costs of Product Y by how much?

• A)$28,500
• B)$29,000
• C)$17,000
• D)$500

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Definitions:

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