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Settings Torid Company processes 18,500 gallons of direct materials to produce two products, Product X and Product Y. Product

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Answer #1

Ans (C) $ 480

Explanation:

1) Product X is a byproduct.

2 ) Product X 's ending units are 75units

3) Ending Inventory:

= $8 × 75

= 600 ( net realizable value)

4) Amount that should be reported in Balance Sheet:

= $600(NRV) * (1- 20% profit margin)

= $600 * 80%

= $480

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