Cambridge Company manufactures three main products, L, M, and N, from a joint process. Additional information for June production activity follows:

Assuming that the 10,000 units of N were processed further and sold for $78,000, what was Cambridge's gross profit from this sale? Assume the physical quantities method of allocation is used.
A) $21,000.
B) $28,500.
C) $30,000.
D) $66,000.

Question

Cambridge Company manufactures three main products, L, M, and N, from a joint process. Additional information for June production activity follows:

Assuming that the 10,000 units of N were processed further and sold for $78,000, what was Cambridge's gross profit from this sale? Assume the physical quantities method of allocation is used.
A) $21,000. 
B) $28,500. 
C) $30,000. 
D) $66,000.

Quizplus · Accepted Answer

The Answer of Cambridge Company manufactures three main products, L, M, and N, from a joint process. Additional information for June production activity follows:

Assuming that the 10,000 units of N were processed further and sold for $78,000, what was Cambridge's gross profit from this sale? Assume the physical quantities method of allocation is used.
A) $21,000. 
B) $28,500. 
C) $30,000. 
D) $66,000.

Cambridge Company Manufactures Three Main Products, L, M, and N