C Limited Produces Two Products (A and B)from a Particular

question 57

Multiple Choice

C Limited produces two products (A and B) from a particular joint process.Each product may be sold at split-off or may be further processed.Joint production costs for the year amounted to $60 000.Sales values and costs are as follows.If the joint production costs were assigned using the relative sales value method the joint costs allocated to A would be:

• A) $20 339
• B) $27 383
• C) $27 857
• D) $0: all joint costs are allocated to B

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Definitions:

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to describe the per share/unit value of the fund.

Year-End Assets

The total value of all assets held by an individual or entity at the end of a fiscal year.

Bonds

Debt securities issued by entities (such as governments or corporations) to raise capital, with a promise to pay back the principal amount along with interest on specified dates.

Total Assets

The sum of all current and non-current assets owned by a company, representing the total resources that can be used to generate future revenue.