Use the information below to answer the following question$($s$).$

Cranbrook Chemical Ltd$.$ manufactures two industrial compounds. In the month of May, $15,000$ litres of direct material costing $$160,000$ were processed at a cost of $$400,000.$ The joint process yielded $16,000$ containers of a compound known as Jarlon and $4,000$ containers of a compound known as Kharton. The respective selling prices of Jarlon and Kharton are $$38$ and $$58.$ Both products may be processed further. Jarlon may be processed into Jaxton at an incremental cost of $$8$ per jar of the final product while Kharton may be processed into Kraxton at an additional cost of $$32$ per jar of the final product. The volume of jars of the final product are: $12,000$ and $3,000$ for Jaxton and Kraxton respectively. The selling price of Jaxton is $$48$ per jar. The selling price of Kraxton is $$102$ per jar.

Assuming Cranbrook uses the sales value at splitoff method and $2,000$ containers of Jarlon and $75$ containers of Kharton are unsold at the end of the period, Cranbrook would report ending inventory of

Question $18$Answer

a$.$

$$38,272.$

b$.$

$$56,598.$

c$.$

$$53,560.$

d$.$

$$79,240.$

e$.$

$$58,100.$

Use the information below to answer the following question$($s$).$

Troy Company processes $15,000$ litres of direct materials to produce two products, Product X and Product Y$.$ Product X$,$ a byproduct, sells for $$4$ per litre, and Product Y$,$ the main product, sells for $$50$ per litre. The following information is for August:

$$ProductionSalesBeginning

InventoryEnding

InventoryProduct X:$4,3754,0000375$Product Y:$10,0009,625125500$

The manufacturing costs totalled $$95,000.$

How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?

Question $17$Answer

a$.$

$$17,500$

b$.$

$$563$

c$.$

$$1,500$

d$.$

$$16,000$

e$.$

$$0$