Exercise 11-39 (Algo) Net Realizable Value Method: Multiple Choice (LO 11-3)Sanford Agricultural Chemicals (SAC) produces two main products, M-4 and M-5, and one by-product, BYP, from a single input, Gen-10. ProductsM-4 and M-5 can either be sold at split-off or processed further and sold. A given batch begins with 2,880 pounds of Gen-10 with a cost of$259,200. Additional information regarding a batch follows:ProductM-4M-5BYPUnitsProduced63,36040,32014,400Unit SalesValue atSplit-off$ 5.0010.000.50If Processed FurtherAdditionalCosts (Per Sales ValueUnit)(Per Unit)$ 2.00$ 6.004.0016.00ΝΑΝΑSAC uses the net realizable at split-off approach to allocate joint costs and treats the sales value of the by-product BYP as other income.Required:The joint cost allocated to product M-5 at Sanford Agricultural Chemicals for a given batch is: Multiple Choice$158,400.$114,048.$110,880.$145,152.None of those sCheck

Job costing combines the expenses of materials, overhead, and labor for a particular activity. This…

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Required: The joint cost allocated to product M-5 at Sanford Agricultural Chemicals for a given batch is:

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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17 - Which of the following is the cost method used by companies that produce different products in certain batches ? a) Normal cost method B) Standard cost method NS) Phase cost method D) full cost method TO) Order cost method
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