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Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as
Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows: PRODUCTS Y Units produced Joint costs Sales value at split-off 31,000 31,000 $ ? $ 465,000 Z 15,500 $ ? $15,500 TOTAL 77,500 $317.000 $713.000 $ ? $ 232,500 Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were O $116,250. $133,800. $232,500. O $201,000. Pablo Company has budgeted production for next year as follows: First 58,000 Quarter Second Third 98.000 108,000 Fourth 88,000 Production in units Three pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 20% of the next quarter's production needs for material A. A total of 48,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: 079,600 pounds. O 300,000 pounds. O 352,800 pounds. O 358,800 pounds
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