Use the information below to answer the following questions:
Argon Manufacturing Company processes direct materials up to the splitoff point where two products (U and V) are obtained and sold. The following information was collected for last quarter of the calendar year:

The cost of purchasing 20,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 19,000 gallons of good products was $1,950,000.
Beginning inventories totaled 100 gallons for U and 50 gallons for V. Ending inventory amounts reflected 600 gallons of Product U and 1,050 gallons of Product V. October costs per unit were the same as November.
-What are the physical-volume proportions for products U and V, respectively?
A) 47.37% and 53.63%
B) 55.00% and 45.00%
C) 52.63% and 47.37%
D) 54.00% and 46.00%
E) 46.00% and 54.00%

Question

Use the information below to answer the following questions:
Argon Manufacturing Company processes direct materials up to the splitoff point where two products (U and V) are obtained and sold. The following information was collected for last quarter of the calendar year:
  
The cost of purchasing 20,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 19,000 gallons of good products was $1,950,000. 
Beginning inventories totaled 100 gallons for U and 50 gallons for V. Ending inventory amounts reflected 600 gallons of Product U and 1,050 gallons of Product V. October costs per unit were the same as November.
-What are the physical-volume proportions for products U and V, respectively?
A) 47.37% and 53.63% 
B) 55.00% and 45.00% 
C) 52.63% and 47.37% 
D) 54.00% and 46.00% 
E) 46.00% and 54.00%

Quizplus · Accepted Answer

U: 10,000/(10,000 + 9,000) = 52.63%
V: 9,000/(10,000 + 9,000) = 47.37%

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