Reference no: EM132530683

Jagger, Inc. production begins in Department A with 1,000 kilograms of material, of which 40% goes to Department B, 50% to Department C, and the rest evaporates. From Department C, 72% goes to Department D, 24% to Department E, and the remainder is scrapped. There are no intermediate markets. By-product sales are treated as miscellaneous income. The following occurred during the month:

Question 1: If Jagger uses the physical output method, the total cost of Joint-1 is:

Department              Costs               Sales               Product Type

A                           $20,000           -------

B                              5,000               $10,000          By-product

C                             30,000                   -------

D                           20,000             60,000                    Joint-1

E                             10,000                   30,000              Joint-2

a). $40,455

b). $57,500

c). $42,500

d). $52,500