Christiansen Corporation Manufactures Joint Products W and X The Joint Cost Allocated to X Under the Net-Realizable-Value Method

question 77

Multiple Choice

Christiansen Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $300,000 in the production of 20,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: $\begin{array}{lcc}&\underline{\text {W}}&\underline{\text {X}}\\\text { Separable processing costs } & \$ 40,000 & \$ 160,000 \\\text { Sales price (per gallon) if processed beyond split-off } & \$ 14 & \$ 12\end{array}$
The joint cost allocated to X under the net-realizable-value method would be:

• A) $210,000.
• B) $180,000.
• C) $184,000.
• D) $190,000.
• E) None of the other answers are correct.

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