Quiz 14
Quiz 14
Quiz 14
The Hovart Corporation manufactures two products out of a joint processCCompod and Ultrasene. The joint
(common) costs incurred are $250,000 for a standard production run that generates 120,000
gallons of Compod and 80,000 gallons of Ultrasene. Compod sells for $2.00 per gallon, while
Ultrasene sells for $3.25 per gallon. If there are no additional processing costs incurred after
the split-off point, the amount of joint cost of each production run allocated to Compod by the
quantitative unit method is:
A. $100,000
B. $120,000
C. $130,000
D. $150,000
E. some amount other than those given above
Gyro Products transferred 10,000 units to one department. An additional 3,000 units of materials were
added in the department. At the end of the month, 7,000 units were transferred to finished
goods; while 4,000 units remained in work in process inventory. There was no beginning
inventory, and lost units were a result of normal production shrinkage. The production costs for
the period in this department would be effectively allocated over:
A. 12,000 units
B. 11,000 units
C. 10,000 units
D. 7,000 units
E. 13,000 units