Beverage Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Production: A 1500 liters, B 500 liters. The joint cost was $10000. There were no inventory balances of A and B. Product A may be processed further to yield 1500 liters of Product Z5 for an additional processing cost of $2 per liter. Product Z5 is sold for $20 per liter. There was no beginning inventory and ending inventory was 150 liters. Product B may be processed further to yield 500 liters of Product W3 for an additional processing cost of $4. Product W3 is sold for $30 per liter. There was no beginning inventory and ending inventory was 50 liters. ---using constant gross-margin percentage NRV method, gross margin of X: Select one: O a. $6500 O b. $14600 O c. $5400 O d. $18900

Beverage Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Production: A 1500 liters, B 500 liters. The joint cost was $10000. There were no inventory balances of A and B. Product A may be processed further to yield 1500 liters of Product Z5 for an additional processing cost of $2 per liter. Product Z5 is sold for $20 per liter. There was no beginning inventory and ending inventory was 150 liters. Product B may be processed further to yield 500 liters of Product W3 for an additional processing cost of $4. Product W3 is sold for $30 per liter. There was no beginning inventory and ending inventory was 50 liters. ---using constant gross-margin percentage NRV method, gross margin of X: Select one: O a. $6500 O b. $14600 O c. $5400 O d. $18900

Name: Beverage Drink Company processes directmaterials up to the splitoff p
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Description: Beverage Drink Company processes directmaterials up to the splitoff point where twoproducts, A and B, are obtained. Thefollowing information was collected for themonth of July: Production: A 1500 liters, B500 liters. The joint cost was $10000.There

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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