Question
Each pound of the raw material, ore, yields 5 units of Beta and 15 units of Gamma. Ore costs $46 per pound. A pound of
Each pound of the raw material, ore, yields 5 units of Beta and 15 units of Gamma. Ore costs $46 per pound. A pound of ore has processing costs (not including the cost of the raw material) of $30 at the split-off point. The selling price for a unit of Beta is $80. The selling price for a unit of Gamma is $40. If the physical quantities method is used to allocate the joint costs, what is the total cost that will be allocated to Beta?
| A. | $27 | |
| B. | $25 | |
| C. | $19 | |
| D. | $57 |
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Fundamental Accounting Principles Volume II
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
1259261433, 978-1260305838
