Torid Company processes 17,750 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $7 per gallon and Product Y, the main product, sells for $160 per gallon. The following information is for December:

The manufacturing costs totalled $27,000.
The production method will report Product X in the balance sheet at ________.
A) $0
B) $4800
C) $875
D) $20,000

Question

Torid Company processes 17,750 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $7 per gallon and Product Y, the main product, sells for $160 per gallon. The following information is for December:

The manufacturing costs totalled $27,000.
The production method will report Product X in the balance sheet at ________.

The manufacturing costs totalled $27,000.
The production method will report Product X in the balance sheet at ________.
A) $0 
B) $4800 
C) $875 
D) $20,000

Quizplus · Accepted Answer

125 gallons × $7 = $875

Torid Company Processes 17,750 Gallons of Direct Materials to Produce