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

Question

Quizplus · Accepted Answer

Joint processing costs should be allocated to the main products, Hee and Haw, as they are the primary focus of the production process. By-products like Cims typically do not receive an allocation of joint costs.

Ranger Company Produces Three Products from a Joint Process