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

question 115

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 uses the net realizable value method and performs further processing after the split-off point, what is the gross profit for product R?

• A)$4,603
• B)$2,936
• C)$3,224
• D)$3,603

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Definitions:

Nonconformists

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A cognitive process involving the focusing of ideas and solutions toward determining a single best solution to a problem.

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