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

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Definitions:

Neutralization

A chemical reaction in which an acid and a base react quantitatively to form water and a salt.

Reduction-Oxidation

A chemical reaction in which the oxidation states of atoms are changed, typically involving the transfer of electrons.

KOH

KOH, potassium hydroxide, is a strong alkali used in industry and as a reagent in the laboratory, especially in saponification reactions.

Lithium Hydroxide

A chemical compound with the formula LiOH, used primarily as a precursor in the production of lithium greases and batteries.