Recyclers, Inc

question 103

Multiple Choice

Recyclers, Inc. reprocesses paper and obtains 2 main products: a by-product and a waste. By-product revenues are treated as a reduction in joint costs. During the period 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following: Sales Value Separable Sales Value After
Product Tons at Split-Off Costs Further Processing
Main-1 200 $4,000 $2,000 $10,000
Main-2 400 5,000 6,000 12,000
By-product 300 2,000 -0- 2,000
Waste 100 -0- -0- -0-
If the firm allocates joint costs to the main products using the sales value at split-off point method, how much will be allocated to Main-2?

• A)$5,556
• B)$4,545
• C)$5,333
• D)$6,666

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Definitions:

Birthrates

The rate at which new individuals are born in a population over a certain period of time.

Average Age

The mean age of individuals within a specific population, calculated by dividing the sum of all individuals' ages by the number of individuals.

Cultural Differences

Variations in the beliefs, values, habits, norms, and behaviors among different groups and societies, affecting international relations, business, and social interactions.

Tolerance

The ability or willingness to tolerate the existence of opinions or behavior that one dislikes or disagrees with.