Use the following information for the next 6 questions.
J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow:
-If J-M uses the physical output method and and performs further processing after the split-off point, what is the ending inventory value for product R?
A) $717
B) $600
C) $860
D) $720

Question

Use the following information for the next 6 questions.
J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow: 
-If J-M uses the physical output method and and performs further processing after the split-off point, what is the ending inventory value for product R?
A) $717 
B) $600 
C) $860 
D) $720

Quizplus · Accepted Answer

The physical output method allocates joint costs based on the proportion of physical units produced. If further processing is done after the split-off point, the costs of further processing are added to the allocated joint costs to determine the ending inventory value.

Use the Following Information for the Next 6 Questions