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