Algonquin Products Produces Two Products, X and Y, in a Single

question 101

Multiple Choice

Algonquin Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing costs beyond the split-off point were X-$10,000; Y-$20,000. X sells for $10.00 per unit; Y sells for $7.50 per unit.
What is the gross profit of product Y assuming the net realizable value method is used?

• A)$45,000
• B)$16,364
• C)$13,636
• D)$30,000

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Definitions:

Independent Variables

Variables in an experiment that are manipulated to determine if they cause a change in the dependent variable.

Observations

The individual entities or datapoints collected for research or analysis purposes, providing the basis for statistical conclusions.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a system, without violating any constraints.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis, used in hypothesis testing.