Torid Company Processes 18,025 Gallons of Direct Materials to Produce

Multiple Choice

Torid Company processes 18,025 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $5 per gallon and Product Y, the main product, sells for $170 per gallon. The following information is for December:

The manufacturing costs totalled $26,000.
Under production method, Product X NRV would be offset against the costs of Product Y by how much?

A) $28,500
B) $29,000
C) $17,000
D) $500