Use the following information for the next 2 questions.
Jagger, Inc. production begins in Department A with 1,000 pounds of material, of which 40% goes to Department B, 50% to Department C, and the rest evaporates. From Department C, 72% goes to Department D, 24% to Department E, and the remainder is scrapped. There are no intermediate markets. By-product sales are treated as miscellaneous income. The following occurred during the month:
-If Jagger uses the net realizable value method, the total cost of Main-2 is
A) $26,667
B) $22,500
C) $16,667
D) $33,333

Question

Use the following information for the next 2 questions.
Jagger, Inc. production begins in Department A with 1,000 pounds of material, of which 40% goes to Department B, 50% to Department C, and the rest evaporates. From Department C, 72% goes to Department D, 24% to Department E, and the remainder is scrapped. There are no intermediate markets. By-product sales are treated as miscellaneous income. The following occurred during the month: 
-If Jagger uses the net realizable value method, the total cost of Main-2 is
A) $26,667 
B) $22,500 
C) $16,667 
D) $33,333

Quizplus · Accepted Answer

The net realizable value method allocates joint costs based on the final sales value minus any additional processing costs. Without specific figures, the choice is based on typical allocation patterns.

Use the Following Information for the Next 2 Questions