Alphabet Soup Inc jointly produces A, B, and C at a joint cost of $100,000. The company uses the production method for byproducts and has estimated that B is a byproduct ofmanufacturing A and C with an estimated NRV of $6,000. The estimated NRVS of A and C are $80,000 and $80,000, respectively. If Alphabet Soup uses the NRV method inallocating joint costs, what will the cost allocation be?Select one:O a. $49,000 to A, $2,000 to B, and $49,000 to C.O b. $48,000 to A, $2,000 to B, and $48,000 to C.O c. $47,000 to A, $0 to B, and $47,000 to C.O d. $50,000 to A, $0 to B, and $50,000 to C.cross outcross outcross outcross out

As per Net Realizable Method (NRV), the net realizable value of by-product is reduced from the joint…

Answered: Alphabet Soup Inc jointly produces A,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sunland uses DM of $48,000 and incurs DL and MOH costs of $61,000 and $28,000, respectively, in a single process that results in two main products, Tex and Mex. Product Tex, which has an immediate sales value of $92,000, is further processed at a cost of $43,000 in order to increase its sales value to $150,000. How much are Sunland's joint costs, and to which products will they be assigned? How much are Sunland's separable costs, and to which products will they be assigned? Total joint costs Total separable costs $ Costs Assigned to
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