Answer the following questions using the information below:
The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following material was collected for the month of January:
The cost of purchasing 250,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 242,500 gallons of good product was $760,000.
-When using the physical-volume method, what is Mr. DirtOut's approximate production cost per unit?
A)$3.02
B)$3.08
C)$3.14
D)$3.22

Question

Answer the following questions using the information below:
The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following material was collected for the month of January:
    The cost of purchasing 250,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 242,500 gallons of good product was $760,000.
-When using the physical-volume method, what is Mr. DirtOut's approximate production cost per unit?
A)$3.02 
B)$3.08 
C)$3.14 
D)$3.22

Quizplus · Accepted Answer

The Answer of Answer the following questions using the information below:
The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following material was collected for the month of January:
    The cost of purchasing 250,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 242,500 gallons of good product was $760,000.
-When using the physical-volume method, what is Mr. DirtOut's approximate production cost per unit?
A)$3.02 
B)$3.08 
C)$3.14 
D)$3.22

Answer the Following Questions Using the Information Below