Question
Great Falls Company makes two products, Wool Gloves and Wool Mittens. They are initially processed from the same raw material and then, after split-off, further
Great Falls Company makes two products, Wool Gloves and Wool Mittens. They are initially processed from the same raw material and then, after split-off, further processed separately. Additional information is as follows:
| Gloves | Mittens | Total | |||||||
| Final Sales Price | $ | 13,200 | $ | 10,620 | $ | 23,820 | |||
| Joint Costs Prior to Split-Off Point | ? | ? | $ | 9,012 | |||||
| Costs Beyond Split-Off Point | $ | 4,400 | $ | 4,400 | $ | 8,800 | |||
What are the joint costs allocated to Gloves and Mittens assuming Great Falls uses the estimated net realizable value approach?
| Gloves | Mittens | ||||||
| A. | $ | 4,506 | $ | 4,506 | |||
| B. | $ | 4,840 | $ | 4,172 | |||
| C. | $ | 5,280 | $ | 3,732 | |||
| D. | $ | 5,440 | $ | 3,572 | |||
Multiple Choice
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Option C
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Option B
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Option D
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Option A
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The Art Of Integrating Strategic Planning Process Metrics Risk Mitigation And Auditing
Authors: J.B. Smith
1st Edition
0873899253, 978-0873899253
