Ranger Company produces three products from a joint process.Products Hee and Haw are considered main products.Product Rams is a by-product.Joint-processing costs should be allocated to _____.
A)Hee and Cims
B)Hee and Haw
C)Rams and Haw
D)Hee, Haw, and Rams

Question

Quizplus · Accepted Answer

Joint-processing costs should be allocated to the main products, which in this case are Hee and Haw. Rams is considered a by-product and therefore is not included in the joint-cost allocation.

Ranger Company Produces Three Products from a Joint Process