Question
QUESTION 30 Superior Refinery produces oil products in a joint production process. For the month of October, $180,000 of joint costs were incurred to produce
QUESTION 30
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Superior Refinery produces oil products in a joint production process. For the month of October, $180,000 of joint costs were incurred to produce the three main products: J1, J2 and J3. Right after the split-off point,
M1 has 200 units with the total sales value of $90,000.
M2 has 300 units with the total sales value of $100,000.
M3 has 500 units with the total sales value of $110,000
Under the physical quantities method, the amount of joint costs allocated to J1 will be:
A. $24,000
B. $45,000
C. $30,000
D. $36,000
Under the net realizable value method, the amount of joint costs allocated to J1 will be:
| A. | $54,000 | |
| B. | $126,000 | |
| C. | $60,000 | |
| D. | $48,000 |
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Auditing And EDP Objective Questions And Explanations
Authors: Irvin N Gleim, William A. Hillison
4th Edition
0917537432, 978-0917537431
