RKH Corporation Produces Three Joint Products

question 127

Multiple Choice

RKH Corporation produces three joint products. During a recent accounting period, joint costs totalled $365 and RKH had no beginning inventories. Additional data appear below: M1 M2 M3
Volume (kilograms) 150 50 300
Sales value at the split-off point $375 $155 $600
Sales value after further processing $450 $200 $900
Separable costs $50 $35 $100
Which of the following methods will result in the smallest joint cost allocation to M3?

• A)Net realizable value
• B)Sales value at split-off point
• C)Physical output
• D)Constant gross margin NRV

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Definitions:

Family and Medical Leave Act

U.S. legislation granting eligible employees up to 12 weeks of unpaid leave for certain family and medical reasons, with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.

Paid Time Off

A policy that gives employees a set amount of days off that are paid by the employer, covering absence for reasons like vacation, illness, and personal time.

Preferred Provider Organization

A managed care organization of medical doctors, hospitals, and other health care providers who have agreed with an insurer to provide health care at reduced rates to the insurer's clients.

Health Care Professionals

Trained and licensed individuals who provide preventive, curative, promotional, or rehabilitative health care services to individuals or communities.