Use the following information for the next 8 questions.
RKH Corporation produces three joint products. During a recent accounting period, joint costs totaled $365 and RKH had no beginning inventories. Additional data appear below:
-Which of the following methods will result in the greatest joint cost allocation to M1?
A) Physical output
B) Sales value at split-off point
C) Net realizable value
D) Constant gross margin NRV

Question

Use the following information for the next 8 questions.
RKH Corporation produces three joint products. During a recent accounting period, joint costs totaled $365 and RKH had no beginning inventories. Additional data appear below: 
-Which of the following methods will result in the greatest joint cost allocation to M1?
A) Physical output 
B) Sales value at split-off point 
C) Net realizable value 
D) Constant gross margin NRV

Quizplus · Accepted Answer

The sales value at split-off point method allocates joint costs based on the relative sales value of each product at the split-off point, which often results in a higher allocation to products with higher sales value at that point, such as M1.

Use the Following Information for the Next 8 Questions