The Mallak Company produced three joint products at a joint cost of $100,000. Two of these products were processed further. Production and sales were:    Product  Weight Sales Additional Processing Costs P 300,000 lbs. $ 245,000   $ 200,000   Q 100,000 lbs.   30,000     -0-   R 100,000 lbs.   175,000     100,000     What is the net income of Mallak Company if the estimated net realizable value method of joint cost allocation is used?   Multiple Choice   $150,000.   $20,000.   $50,000.   $350,000.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
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The Mallak Company produced three joint products at a joint cost of $100,000. Two of these products were processed further. Production and sales were:
   

Product  Weight Sales Additional Processing Costs
P 300,000 lbs. $ 245,000   $ 200,000  
Q 100,000 lbs.   30,000     -0-  
R 100,000 lbs.   175,000     100,000  
 


What is the net income of Mallak Company if the estimated net realizable value method of joint cost allocation is used?

 

Multiple Choice

  •  

    $150,000.

  •  

    $20,000.

  •  

    $50,000.

  •  

    $350,000.

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