Quiz 11: Allocation of Joint Costs and Accounting for By-Products
Business
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Q 6Q 6
The point at which individual products are first identifiable in a joint process is referred to as the split-off point.
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True False
Q 7Q 7
Joint costs include all materials,labor and overhead that are incurred before the split-off point.
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True False
Q 8Q 8
Two methods of allocating joint costs to products are physical measure allocation and monetary allocation.
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True False
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True False
Q 10Q 10
Allocating joint costs based upon a physical measure ignores the revenue-generating ability of individual products.
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True False
Q 11Q 11
Allocating joint costs based upon a physical measure considers the revenue-generating ability of individual products.
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True False
Q 12Q 12
Monetary allocation measures recognize the revenue generating ability of each product in a joint process.
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True False
Q 13Q 13
The relative sales value method requires a common physical unit for measuring the output of each product.
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True False
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True False
Q 15Q 15
Net realizable value equals product sales revenue at split-off plus any costs necessary to prepare and dispose of the product.
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True False
Q 16Q 16
Net realizable value equals product sales revenue at split-off minus any costs necessary to prepare and dispose of the product.
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True False
Q 17Q 17
If incremental revenues beyond split-off are less than incremental costs,a product should be sold at the split-off point.
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True False
Q 18Q 18
If incremental revenues beyond split-off exceed incremental costs,a product should be processed further.
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True False
Q 19Q 19
The net realizable value approach requires that the net realizable value of by-products and scrap be treated as a reduction in joint costs allocated to primary products.
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True False
Q 20Q 20
Net realizable value is considered to be the best measure of the expected contribution of each product to the coverage of joint costs.
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True False
Q 21Q 21
The net realizable value approach is used to account for scrap and by-products when the net realizable value is insignificant.
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True False
Q 22Q 22
The net realizable value approach is used to account for scrap and by-products when the net realizable value is significant.
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True False
Q 23Q 23
Under the realized value approach,no value is recognized for by-products or scrap until they are actually sold.
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True False
Q 24Q 24
Under the net realizable value approach,no value is recognized for by-products or scrap until they are actually sold.
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True False
Q 25Q 25
Not-for-profit entities are required to allocate joint costs among fund-raising,program,and administrative functions.
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True False
Q 26Q 26
A single process in which one product cannot be manufactured without producing others is referred to as a _________________________.
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Essay
Q 27Q 27
Costs that are incurred in the manufacture of two or more products from a common process are referred to as _________________________.
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Q 28Q 28
Costs that are incurred after the split-off point in a production process are referred to as ______________________________.
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Q 29Q 29
Three types of products that result from a joint process are _________________________,____________________,and ____________________.
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Q 30Q 30
Two incidental products of a joint process are ____________________ and ____________________.
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Q 31Q 31
The point at which individual products are first identifiable in a joint process is referred to as the _________________________.
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Q 32Q 32
Two methods of allocating joint costs to individual products are ________________________________________ and ________________________________________.
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Q 33Q 33
Three monetary measures used to allocate joint costs to products are ________________________________________,________________________________________,and ____________________________________________________________.
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Essay
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Essay
Q 35Q 35
If a company obtains two salable products from the refining of one ore,the refining process should be accounted for as a(n)
A)mixed cost process.
B)joint process.
C)extractive process.
D)reduction process.
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Multiple Choice
Q 36Q 36
Joint costs are allocated to joint products to
A)obtain a cost per unit for financial statement purposes.
B)provide accurate management information on production costs of each type of product.
C)compute variances from expected costs for each joint product.
D)allow the use of high-low analysis by the company.
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Multiple Choice
Q 37Q 37
Joint costs are allocated to which of the following products?
A)yes yes
B)yes no
C)no no
D)no yes
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Multiple Choice
Q 38Q 38
Joint cost allocation is useful for
A)decision making.
B)product costing.
C)control.
D)evaluating managers' performance.
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Multiple Choice
Q 39Q 39
Joint costs are useful for
A)setting the selling price of a product.
B)determining whether to continue producing an item.
C)evaluating management by means of a responsibility reporting system.
D)determining inventory cost for accounting purposes.
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Multiple Choice
Q 40Q 40
Which of the following components of production are allocable as joint costs when a single manufacturing process produces several salable products?
A)direct material,direct labor,and overhead
B)direct material and direct labor only
C)direct labor and overhead only
D)overhead and direct material only
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Multiple Choice
Q 41Q 41
Each of the following is a method to allocate joint costs except
A)relative sales value.
B)relative net realizable value.
C)relative weight,volume,or linear measure.
D)average unit cost.
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Multiple Choice
Q 42Q 42
Joint costs are most frequently allocated based upon relative
A)profitability.
B)conversion costs.
C)prime costs.
D)sales value.
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Multiple Choice
Q 43Q 43
When allocating joint process cost based on tons of output,all products will
A)be salable at split-off.
B)have the same joint cost per ton.
C)have a sales value greater than their costs.
D)have no disposal costs at the split-off point.
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Multiple Choice
Q 44Q 44
If two or more products share a common process before they are separated,the joint costs should be assigned in a manner that
A)assigns a proportionate amount of the total cost to each product on a quantitative basis.
B)maximizes total earnings.
C)minimizes variations in unit production costs.
D)does not introduce an element of estimation into the process of accumulating costs for each product.
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Multiple Choice
Q 45Q 45
Scrap is defined as a
A)finished unit of product that has no sales value.
B)residual of the production process that has limited sales value.
C)residual of the production process that can be reworked for sale as an irregular unit of product.
D)residual of the production process that has no sales value.
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Multiple Choice
Q 46Q 46
Waste created by a production process is
A)accounted for in the same manner as defective units.
B)accounted for as an abnormal loss.
C)material that can be sold as an irregular product.
D)discarded rather than solD.
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Multiple Choice
Q 47Q 47
While preparing a salad,the chef removes the core from a head of lettuce.This core would be classified as
A)defective.
B)shrinkage.
C)waste.
D)scrap.
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Multiple Choice
Q 48Q 48
Which of the following is/are synonyms for joint products?
A)no no
B)yes yes
C)yes no
D)no yes
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Multiple Choice
Q 49Q 49
In a lumber mill,which of the following would most likely be considered a primary product?
A)2 ´ 4 studs
B)sawdust
C)wood chips
D)tree bark
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Multiple Choice
Q 50Q 50
Witte Company produces three products from a joint process.The products can be sold at split-off or processed further.In deciding whether to sell at split-off or process further,management should
A)allocate the joint cost to the products based on relative sales value prior to making the decision.
B)allocate the joint cost to the products based on a physical quantity measure prior to making the decision.
C)subtract the joint cost from the total sales value of the products before determining relative sales value and making the decision.
D)ignore the joint cost in making the decision.
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Multiple Choice
Q 51Q 51
By-products are
A)items resulting from a joint process that have no further value.
B)not sufficient alone,in terms of sales value,for management to justify undertaking the joint process.
C)also known as scrap.
D)the primary reason management undertook the production process.
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Multiple Choice
Q 52Q 52
Which of the following statements is true regarding by-products or scrap?
A)Process costing is the only method that should result in by-products or scrap.
B)Job order costing systems will never have by-products or scrap.
C)Job order costing systems may have instances where by-products or scrap result from the production process.
D)Process costing will never have by-products or scrap from the production process.
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Multiple Choice
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Multiple Choice
Q 54Q 54
Under an acceptable method of costing by-products,inventory costs of the by-product are based on the portion of the joint production cost allocated to the by-product
A)but any subsequent processing cost is debited to the cost of the main product.
B)but any subsequent processing cost is debited to revenue of the main product.
C)plus any subsequent processing cost.
D)minus any subsequent processing cost.
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Multiple Choice
Q 55Q 55
Which of the following is a false statement about scrap and by-products?
A)Both by-products and scrap are salable.
B)A by-product has a higher sales value than does scrap.
C)Management's goal is to produce both scrap and by-products.
D)Both scrap and by-products are incidental outputs to the joint process.
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Multiple Choice
Q 56Q 56
The split-off point is the point at which
A)output is first identifiable as individual products.
B)joint costs are allocated to joint products.
C)some products may first be sold.
D)all of the above.
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Multiple Choice
Q 57Q 57
A product may be processed beyond the split-off point if management believes that
A)its marketability will be enhanced.
B)the incremental cost of further processing will be less than the incremental revenue of further processing.
C)the joint cost assigned to it is not already greater than its prospective selling price.
D)both a and b.
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Multiple Choice
Q 58Q 58
In a joint costing process,which of the following would not be considered a sunk cost?
A)direct material cost
B)direct labor cost
C)joint cost
D)costs incurred to further refine a product created by the process
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Multiple Choice
Q 59Q 59
The definition of a sunk cost is
A)a cost that cannot be recovered regardless of what happens.
B)a cost that relates to money poured into the ground.
C)considered the original cost of an item.
D)also known as an opportunity cost.
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Multiple Choice
Q 60Q 60
The net realizable value approach mandates that the NRV of the by-products/scrap be treated as
A)an increase in joint costs.
B)a sunk cost.
C)a reduction of joint costs.
D)a cost that can be ignored totally.
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Multiple Choice
Q 61Q 61
The net realizable value approach is normally used when the NRV is expected to be
A)yes yes
B)no yes
C)no no
D)yes no
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Multiple Choice
Q 62Q 62
Approximated net realizable value at split-off for joint products is computed as
A)selling price at split-off minus further processing and disposal costs.
B)final selling price minus further processing and disposal costs.
C)selling price at split-off minus allocated joint processing costs.
D)final selling price minus a normal profit margin.
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Multiple Choice
Q 63Q 63
Which of the following is a commonly used joint cost allocation method?
A)high-low method
B)regression analysis
C)approximated sales value at split-off method
D)weighted average quantity technique
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Multiple Choice
Q 64Q 64
Incremental separate costs are defined as all costs incurred between ____ and the point of sale.
A)inception
B)split-off point
C)transfer to finished goods inventory
D)point of addition of disposal costs
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Multiple Choice
Q 65Q 65
All costs that are incurred between the split-off point and the point of sale are known as
A)sunk costs.
B)incremental separate costs.
C)joint cost.
D)committed costs.
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Multiple Choice
Q 66Q 66
Incremental revenues and costs need to be considered when using which allocation method?
A)yes yes
B)yes no
C)no no
D)no yes
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Multiple Choice
Q 67Q 67
The method of pricing by-products/scrap where no value is assigned to these items until they are sold is known as the
A)net realizable value at split-off point method.
B)sales value at split-off method.
C)realized value approach.
D)approximated net realizable value at split-off methoD.
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Multiple Choice
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Multiple Choice
Q 69Q 69
For purposes of allocating joint costs to joint products using the relative sales value at split-off method,the costs beyond split-off
A)are allocated in the same manner as the joint costs.
B)are deducted from the relative sales value at split-off.
C)are deducted from the sales value at the point of sale.
D)do not affect the allocation of the joint costs.
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Multiple Choice
Q 70Q 70
In joint-product costing and analysis,which of the following costs is relevant in the decision when a product should be sold to maximize profits?
A)Separable costs after the split-off point
B)Joint costs to the split-off point
C)Sales salaries for the production period
D)Costs of raw materials purchased for the joint process.
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Multiple Choice
Q 71Q 71
Not-for-profit organizations are required by the ____ to allocate joint costs.
A)AICPA
B)FASB
C)CASB
D)GASB
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Multiple Choice
Q 72Q 72
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using a physical measure,what amount of joint processing cost is allocated to Product X (round to the nearest dollar)?
A)$4,000
B)$4,757
C)$5,500
D)$3,243
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Multiple Choice
Q 73Q 73
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using a physical measure,what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)?
A)$4,000
B)$3,243
C)$5,500
D)$4,757
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Multiple Choice
Q 74Q 74
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product X (round to the nearest dollar)?
A)$5,500
B)$2,500
C)$4,000
D)$3,243
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Multiple Choice
Q 75Q 75
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)?
A)$5,500
B)$4,000
C)$2,500
D)$4,757
Free
Multiple Choice
Q 76Q 76
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product X (round to the nearest dollar)?
A)$4,000
B)$5,610
C)$2,390
D)$5,500
Free
Multiple Choice
Q 77Q 77
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)?
A)$5,500
B)$4,000
C)$2,390
D)$5,610
Free
Multiple Choice
Q 78Q 78
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product X (round to the nearest dollar)?
A)$3,090
B)$5,204
C)$4,000
D)$2,390
Free
Multiple Choice
Q 79Q 79
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)?
A)$2,796
B)$4,910
C)$4,000
D)$2,390
Free
Multiple Choice
Q 80Q 80
Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Chambers Company.Which products would be processed further?
A)only Product X
B)only Product Z
C)both Products X and Z
D)neither Product X or Z
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Multiple Choice
Q 81Q 81
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using a physical measure,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?
A)$2,938
B)$3,682
C)$4,500
D)$5,318
Free
Multiple Choice
Q 82Q 82
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using a physical measure,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$3,682
B)$4,500
C)$5,318
D)$6,062
Free
Multiple Choice
Q 83Q 83
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?
A)$2,938
B)$3,682
C)$4,500
D)$6,062
Free
Multiple Choice
Q 84Q 84
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$2,938
B)$3,682
C)$4,500
D)$6,062
Free
Multiple Choice
Q 85Q 85
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?
A)$2,718
B)$4,500
C)$6,062
D)$6,282
Free
Multiple Choice
Q 86Q 86
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$2,718
B)$4,500
C)$6,062
D)$6,282
Free
Multiple Choice
Q 87Q 87
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?
A)$2,718
B)$2,934
C)$3,014
D)$4,500
Free
Multiple Choice
Q 88Q 88
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$4,500
B)$5,986
C)$6,062
D)$6,282
Free
Multiple Choice
Q 89Q 89
Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Which products would be processed further?
A)only Product A
B)only Product C
C)both Products A and C
D)neither Product A or C
Free
Multiple Choice
Q 90Q 90
Baker Company
Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.
If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00.
Refer to Baker Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?
A)$700
B)$679
C)$927
D)$494
Free
Multiple Choice
Q 91Q 91
Baker Company
Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.
If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00.
Refer to Baker Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product B (round to the nearest dollar)?
A)$494
B)$679
C)$927
D)$700
Free
Multiple Choice
Q 92Q 92
Baker Company
Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.
If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00.
Refer to Baker Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product B (round to the nearest dollar)?
A)$700
B)$416
C)$725
D)$959
Free
Multiple Choice
Q 93Q 93
Baker Company
Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.
If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00.
Refer to Baker Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$959
B)$725
C)$700
D)$416
Free
Multiple Choice
Q 94Q 94
Baker Company
Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.
If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00.
Refer to Baker Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?
A)$706
B)$951
C)$700
D)$444
Free
Multiple Choice
Q 95Q 95
Baker Company
Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.
If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00.
Refer to Baker Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$706
B)$951
C)$444
D)$700
Free
Multiple Choice
Q 96Q 96
Fulton Company
Fulton Company is placing an ad in the local paper to advertise its products.The ad will run for one week at a total cost of $5,500.Fulton Company has four categories of products as follows:
Refer to Fulton Company.What amount of advertising cost should be allocated to hardware,assuming Fulton allocates based on percent of floor space occupied?
A)$1,375
B)$1,100
C)$2,475
D)$ 825
Free
Multiple Choice
Q 97Q 97
Fulton Company
Fulton Company is placing an ad in the local paper to advertise its products.The ad will run for one week at a total cost of $5,500.Fulton Company has four categories of products as follows:
Refer to Fulton Company.Assume that Fulton decides to allocate based on expected sales value.What amount of advertising cost should be allocated to light fixtures (round to the nearest dollar)?
A)$1,375
B)$589
C)$1,002
D)$2,534
Free
Multiple Choice
Q 98Q 98
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product D?
A)$1,748
B)$2,447
C)$1,311
D)$3,495
Free
Multiple Choice
Q 99Q 99
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product E?
A)$3,495
B)$2,447
C)$1,748
D)$1,311
Free
Multiple Choice
Q 100Q 100
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product C?
A)$3,495
B)$2,447
C)$1,748
D)$1,311
Free
Multiple Choice
Q 101Q 101
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product G?
A)$3,495
B)$2,447
C)$1,748
D)$1,311
Free
Multiple Choice
Q 102Q 102
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product D?
A)$4,433
B)$2,276
C)$1,108
D)$1,182
Free
Multiple Choice
Q 103Q 103
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product C?
A)$4,433
B)$2,276
C)$1,108
D)$1,182
Free
Multiple Choice
Q 104Q 104
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product G?
A)$4,433
B)$1,182
C)$1,108
D)$2,276
Free
Multiple Choice
Q 105Q 105
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using sales value at split-off,what amount of joint processing cost is allocated to Product E?
A)$4,433
B)$1,182
C)$1,108
D)$2,276
Free
Multiple Choice
Q 106Q 106
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product C?
A)$1,550
B)$1,017
C)$4,263
D)$2,170
Free
Multiple Choice
Q 107Q 107
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product D?
A)$1,550
B)$1,017
C)$4,263
D)$2,170
Free
Multiple Choice
Q 108Q 108
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product E?
A)$1,017
B)$1,550
C)$2,170
D)$4,263
Free
Multiple Choice
Q 109Q 109
Shiny Floors Company
Shiny Floors Company produces four floor cleaners from the same process: C,D,E,and G.Joint product costs are $9,000.(Round all answers to the nearest dollar. )
If Shiny Floors sells the products after further processing,the following disposal costs will be incurred: C,$2.50;D,$1.00;E,$3.50;G,$6.00.
Refer to Shiny Floors Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product G?
A)$1,017
B)$1,550
C)$2,170
D)$4,263
Free
Multiple Choice
Q 110Q 110
Industrial Solutions Company
Industrial Solutions Company produces three products from the same process that has joint processing costs of $4,100.Products R,S,and T are produced in the following quantities: 250 gallons,400 gallons,and 750 gallons.Industrial Solutions Company also incurred advertising costs of $60,000.The ad was used to run sales for all three products.The three products occupy floor space in the following ratio: 5:4:9.(Round all answers to the nearest dollar. )
Refer to Industrial Solutions Company.Using gallons as the physical measurement,what amount of joint processing cost is allocated to Product R?
A)$2,196
B)$1,171
C)$1,367
D)$ 732
Free
Multiple Choice
Q 111Q 111
Industrial Solutions Company
Industrial Solutions Company produces three products from the same process that has joint processing costs of $4,100.Products R,S,and T are produced in the following quantities: 250 gallons,400 gallons,and 750 gallons.Industrial Solutions Company also incurred advertising costs of $60,000.The ad was used to run sales for all three products.The three products occupy floor space in the following ratio: 5:4:9.(Round all answers to the nearest dollar. )
Refer to Industrial Solutions Company.Using gallons as the physical measurement,what amount of joint processing cost is allocated to Product S?
A)$2,196
B)$1,171
C)$1,367
D)$ 732
Free
Multiple Choice
Q 112Q 112
Industrial Solutions Company
Industrial Solutions Company produces three products from the same process that has joint processing costs of $4,100.Products R,S,and T are produced in the following quantities: 250 gallons,400 gallons,and 750 gallons.Industrial Solutions Company also incurred advertising costs of $60,000.The ad was used to run sales for all three products.The three products occupy floor space in the following ratio: 5:4:9.(Round all answers to the nearest dollar. )
Refer to Industrial Solutions Company.Using gallons as the physical measurement,what amount of joint processing cost is allocated to Product T?
A)$2,196
B)$732
C)$1,367
D)$1,171
Free
Multiple Choice
Q 113Q 113
Industrial Solutions Company
Industrial Solutions Company produces three products from the same process that has joint processing costs of $4,100.Products R,S,and T are produced in the following quantities: 250 gallons,400 gallons,and 750 gallons.Industrial Solutions Company also incurred advertising costs of $60,000.The ad was used to run sales for all three products.The three products occupy floor space in the following ratio: 5:4:9.(Round all answers to the nearest dollar. )
Refer to Industrial Solutions Company.Assume that Industrial Solutions chooses to allocate its advertising cost among the three products.What amount of advertising cost is allocated to Product R using the floor space ratio?
A)$30,000
B)$17,806
C)$1,139
D)$16,667
Free
Multiple Choice
Q 114Q 114
Industrial Solutions Company
Industrial Solutions Company produces three products from the same process that has joint processing costs of $4,100.Products R,S,and T are produced in the following quantities: 250 gallons,400 gallons,and 750 gallons.Industrial Solutions Company also incurred advertising costs of $60,000.The ad was used to run sales for all three products.The three products occupy floor space in the following ratio: 5:4:9.(Round all answers to the nearest dollar. )
Refer to Industrial Solutions Company.Assume that Industrial Solutions chooses to allocate its advertising cost among the three products.What amount of advertising cost is allocated to Product S using the floor space ratio?
A)$911
B)$14,244
C)$13,333
D)$30,000
Free
Multiple Choice
Q 115Q 115
Industrial Solutions Company
Industrial Solutions Company produces three products from the same process that has joint processing costs of $4,100.Products R,S,and T are produced in the following quantities: 250 gallons,400 gallons,and 750 gallons.Industrial Solutions Company also incurred advertising costs of $60,000.The ad was used to run sales for all three products.The three products occupy floor space in the following ratio: 5:4:9.(Round all answers to the nearest dollar. )
Refer to Industrial Solutions Company.Assume that Industrial Solutions chooses to allocate its advertising cost among the three products.What amount of advertising cost is allocated to Product T using the floor space ratio?
A)$911
B)$14,244
C)$13,333
D)$30,000
Free
Multiple Choice
Q 116Q 116
Kilpatrick Company manufactures products A and B from a joint process.Sales value at split-off was $700,000 for 10,000 units of A,and $300,000 for 15,000 units of B.Using the sales value at split-off approach,joint costs that Kilpatrick allocated to A were $140,000.Total joint costs were
A)$ 98,000.
B)$200,000.
C)$233,333.
D)$350,000.
Free
Multiple Choice
Q 117Q 117
Victoria Company
Victoria Company manufactures three products in a joint process which costs $25,000.Each product can be sold at split-off or processed further and then sold.10,000 units of each product are manufactured.The following information is available for the three products:
Refer to Victoria Company.If Product A is processed beyond the split-off point,profit will:
A)increase by $210,000
B)increase by $120,000
C)increase by $ 90,000
D)remain unchanged
Free
Multiple Choice
Q 118Q 118
Victoria Company
Victoria Company manufactures three products in a joint process which costs $25,000.Each product can be sold at split-off or processed further and then sold.10,000 units of each product are manufactured.The following information is available for the three products:
Refer to Victoria Company.To maximize profits,which products should Victoria process further?
A)Product A only
B)Product B only
C)Product C only
D)Products A,B,and C
Free
Multiple Choice
Q 119Q 119
Ryan Company
Ryan Company manufactures products X and Y from a joint process that also yields a by-product,Z.Revenue from sales of Z is treated as a reduction of joint costs.Additional information is as follows:
Joint costs were allocated using the sales value at split-off approach.
Refer to Ryan Company.The joint costs allocated to product X were
A)$ 84,000
B)$100,800.
C)$150,000.
D)$168,000.
Free
Multiple Choice
Q 120Q 120
Ryan Company
Ryan Company manufactures products X and Y from a joint process that also yields a by-product,Z.Revenue from sales of Z is treated as a reduction of joint costs.Additional information is as follows:
Joint costs were allocated using the sales value at split-off approach.
Refer to Ryan Company.The joint costs allocated to product Y were
A)$ 84,000
B)$100,800.
C)$150,000.
D)$168,000.
Free
Multiple Choice
Free
Essay
Free
Essay
Free
Essay
Q 124Q 124
Briefly discuss the restrictions and requirements on service organizations and not-for-profits that relate to joint cost allocation.
Free
Essay
Q 125Q 125
Briefly discuss the net realizable value at split-off point method of allocating joint costs.
Free
Essay
Q 126Q 126
Why is the net realizable value of scrap used to lower estimated overhead costs in setting a predetermined overhead rate in a job order costing situation in which scrap is expected on most jobs?
Free
Essay
Q 127Q 127
Lamar Company
Lamar Company produces only two products and incurs joint processing costs that total $3,750.Products Alpha and Beta are produced in the following quantities during each month: 4,500 and 6,000 gallons,respectively.Lamar Company also runs one ad each month that advertises both products at a cost of $1,500.The selling price per gallon for the two products are $20 and $17.50,respectively.
Refer to Lamar Company.What amount of joint processing costs is allocated to each product based on gallons produced?
Free
Essay
Q 128Q 128
Lamar Company
Lamar Company produces only two products and incurs joint processing costs that total $3,750.Products Alpha and Beta are produced in the following quantities during each month: 4,500 and 6,000 gallons,respectively.Lamar Company also runs one ad each month that advertises both products at a cost of $1,500.The selling price per gallon for the two products are $20 and $17.50,respectively.
Refer to Lamar Company.What amount of advertising cost is allocated to each product based on sales value?
Free
Essay
Q 129Q 129
Moore Company
Moore Company produces three products from the same process and incurs joint processing costs of $3,000.
Disposal costs for the products if they are processed further are:
M,$3.00;N,$5.50;Q,$1.00.
Refer to Moore Company.What amount of joint processing cost is allocated to the three products using sales value at split-off?
Free
Essay
Q 130Q 130
Moore Company
Moore Company produces three products from the same process and incurs joint processing costs of $3,000.
Disposal costs for the products if they are processed further are:
M,$3.00;N,$5.50;Q,$1.00.
Refer to Moore Company.What amount of joint processing cost is allocated to the three products using net realizable value at split-off?
Free
Essay
Q 131Q 131
Ardmore Company produces two main products jointly,A and B,and C,which is a by-product of
B.Costs before separation are apportioned between the two main products by the net realizable value method.The net revenue realized from the sale of C is deducted from the cost of
B.A and B are produced from the same raw material.C is manufactured from the residue of the process creating
B.Data for April were as follows:
Required: Determine the gross profit for April.
Free
Essay
Q 132Q 132
Joplin Corporation produces three products from a common manufacturing process.The total joint cost of producing 2,000 pounds of Product A;1,000 pounds of Product B;and 1,000 pounds of Product C is $7,500.Selling price per pound of the three products are $15 for Product A;$10 for Product B;and $5 for Product C.Joint cost is allocated using the sales value method.
Required:
Free
Essay
Q 133Q 133
Detroit Manufacturing Company makes three products: A and B are considered main products and C a by-product.
Production and sales for the year were:
220,000 lbs.of Product A,salable at $6.00
180,000 lbs.of Product B,salable at $3.00
50,000 lbs.of Product C,salable at $.90
Production costs for the year:
B.
Free
Essay
Q 134Q 134
Arnold Company processes raw material in Department 1 from which come two main products,A and B,and a by-product,
C.A is further processed in Department 2,B in Department 3,and C in Department 4.The value of the by-product reduces the cost of the main products,and sales value is used to allocate joint costs.
Required:
Free
Essay
Q 135Q 135
Knight Corporation manufactures three identifiable product lines,Products A,B,and C,from a basic processing operation.The cost of the basic operation is $320,000 for a yield of 5,000 tons of Product A;2,000 tons of Product B;and 1,000 tons of Product C.The basic processing cost is allocated to the product lines in proportion to the relative weight produced.
Knight Corporation does both the basic processing work and the further refinement of the three product lines.After the basic operation,the products can be sold at the following prices per metric ton:
Product A-$60
Product B-$53
Product C-$35
Costs to refine each of the three product lines follow:
The fixed cost of the refining operation will not be incurred if the product line is not refined.
The refined products can be sold at the following prices per metric ton:
Product A-$75
Product B-$65
Product C-$40
Required:
Free
Essay
Q 136Q 136
Bolton Company produced three joint products at a joint cost of $100,000.These products were processed further and sold as follows:
Free
Essay