Otto IncBegan the Current Period with No Inventories

question 121

Essay

Otto Inc.began the current period with no inventories.During the period, it processed 50,000 pounds of materials costing $450,000.Conversion costs incurred during the period amounted to $660,000.The firm ended the period with no work-in-process.During the period, the firm produced 16,000, 24,000, and 10,000 units of X, Y, and Z, respectively.All costs are considered joint costs.The firm sold 12,000 units of X, 16,000 units of Y, and 9,000 units of Z.X sells for $30 per unit, Y for $44 per unit, and Z for $4 per unit.The firm uses the net realizable value method for cost allocation.Z is considered a by-product.
Required:

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Definitions:

Communication

The process of exchanging information, ideas, or feelings between individuals or groups through various channels or mediums.

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products, often summarized as product, price, place, and promotion.

Marketing

The activities, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Ps

Typically refers to the marketing mix's components: Product, Price, Place, and Promotion, which are used to market products effectively.