Deli Products Produces Two Products, X and Y, in a Single

question 53

Multiple Choice

Deli Products produces two products, X and Y, in a single process.In 2011, the joint costs of this process were $25,000.In addition, 4,000 units of X and 6,000 units of Y were produced.Separable processing costs beyond the split-off point were X-$10,000; Y-$20,000.X sells for $10.00 per unit; Y sells for $7.50 per unit. What is the gross profit of product Y assuming the net realizable value method is used?

• A) $13,636
• B) $16,364
• C) $30,000
• D) $45,000

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Definitions:

Milk Tanker Trailer

A specialized type of trailer designed for transporting liquid milk from farms to processing plants, typically insulated to maintain temperature.

Tank Pop-Off Valve

A safety valve on a tank (such as an air compressor or pressure vessel) that releases pressure to prevent over-pressurization.

Rupture Disk

A safety device designed to burst at a predetermined pressure to relieve excessive pressure from vessels or piping systems.

Hubdometer

A wheel hub located odometer used to track and display mileage; especially useful on trailers to schedule service intervals.