Torid Company processes 18,025 gallons of direct materials to produce two products,Product X and Product Y.Product X sells for $5 per gallon and Product Y,the main product,sells for $170 per gallon.The following information is for December:

The manufacturing costs totalled $26,000.
Under production method,Product X NRV would be offset against the costs of Product Y by how much?
A)$28,500
B)$29,000
C)$17,000
D)$500

Question

Torid Company processes 18,025 gallons of direct materials to produce two products,Product X and Product Y.Product X sells for $5 per gallon and Product Y,the main product,sells for $170 per gallon.The following information is for December:

The manufacturing costs totalled $26,000.
Under production method,Product X NRV would be offset against the costs of Product Y by how much?

The manufacturing costs totalled $26,000.
Under production method,Product X NRV would be offset against the costs of Product Y by how much?
A)$28,500 
B)$29,000 
C)$17,000 
D)$500

Quizplus · Accepted Answer

5800 gallons × $5 = $29,000

Torid Company Processes 18,025 Gallons of Direct Materials to Produce