Jagger, Inc

question 130

Multiple Choice

Jagger, Inc. production begins in Department A with 1,000 kilograms of material, of which 40% goes to Department B, 50% to Department C, and the rest evaporates. From Department C, 72% goes to Department D, 24% to Department E, and the remainder is scrapped. There are no intermediate markets. By-product sales are treated as miscellaneous income. The following occurred during the month: Department Costs Sales Product Type
A $20,000 ---
B 5,000 $10,000 By-product
C 30,000 ---
D 20,000 60,000 Main-1
E 10,000 30,000 Main-2
If Jagger uses the physical output method, the total cost of Main-1 is:

• A)$40,455
• B)$57,500
• C)$42,500
• D)$52,500

---

Definitions:

Labour Costs

Financial expenditures related to employing workers, including wages, benefits, taxes, and training expenses.

In-house Consultant

An employee within an organization who provides expert advice and services in a particular area, similar to an external consultant but employed internally.

Administrative Costs

Expenses related to the general administration of a business, such as salaries of non-production employees, office supplies, and utilities.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.