J-M Company Uses a Joint Process Costing $15,000 to Produce

question 138

Multiple Choice

J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow: Units Sales Value Separable Sales Value After Units
Product Produced at Split-Off Costs Further Processing Sold
S 500 $5,000 $500 $ 7,000 400
T 450 6,000 650 9,000 300
R 300 9,000 700 10,000 250
If J-M sells products at the split-off point and uses the relative sales value at split-off point method to allocate joint costs, what is the carrying value of ending inventory for product T?

• A)$1,717
• B)$2,575
• C)$2,250
• D)$1,500

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Definitions:

Carbon Dioxide

An odorless, colorless gas resulting from the burning of carbon and organic molecules, and emitted during breathing, which is assimilated by plants for use in photosynthesis.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to release stored energy through the oxidation of acetyl-CoA derived from carbohydrates, fats, and proteins into carbon dioxide and chemical energy.

Glucose Molecule

A simple sugar and important energy source in living organisms, serving as a primary substrate for cellular respiration and a basic building block for carbohydrates.

Cellular Respiration

A metabolic process that occurs in cells where oxygen is used to break down glucose, producing ATP as energy for the cell.