Use the following information for the next 2 questions.
A joint input costing $500 results in four distinct products at the point of split-off. Products J, K and L are main products, and product M is a by-product. Relevant data follows:
-If the revenue from Product M is recognized at time of sale, at what cost will it be inventoried before further processing?
A) $0
B) $10
C) $20
D) $30

Question

Use the following information for the next 2 questions.
A joint input costing $500 results in four distinct products at the point of split-off. Products J, K and L are main products, and product M is a by-product. Relevant data follows: 
-If the revenue from Product M is recognized at time of sale, at what cost will it be inventoried before further processing?
A) $0 
B) $10 
C) $20 
D) $30

Quizplus · Accepted Answer

The cost of inventory before further processing is typically recognized at $0 if the revenue is recognized at the time of sale, as the cost is transferred to cost of goods sold.

Use the Following Information for the Next 2 Questions