Quiz 11: Allocation of Joint Costs and Accounting for By-Products

Joint costs occur after the split-off point in a production process.

Joint costs occur before the split-off point in a production process.

Joint costs may be allocated to by-products as well as primary products.

The primary distinction between by-products and scrap is the difference in sales value.

The primary distinction between by-products and scrap is the difference in volume produced.

The point at which individual products are first identifiable in a joint process is referred to as the split-off point.

Joint costs include all materials,labor and overhead that are incurred before the split-off point.

Two methods of allocating joint costs to products are physical measure allocation and monetary allocation.

A decision that must be made at split-off is to sell a product or process it further.

Allocating joint costs based upon a physical measure ignores the revenue-generating ability of individual products.

Allocating joint costs based upon a physical measure considers the revenue-generating ability of individual products.

Monetary allocation measures recognize the revenue generating ability of each product in a joint process.

The relative sales value method requires a common physical unit for measuring the output of each product.

Joint costs may be allocated to main products,but not to by-products.

Net realizable value equals product sales revenue at split-off plus any costs necessary to prepare and dispose of the product.

Net realizable value equals product sales revenue at split-off minus any costs necessary to prepare and dispose of the product.

If incremental revenues beyond split-off are less than incremental costs,a product should be sold at the split-off point.

If incremental revenues beyond split-off exceed incremental costs,a product should be processed further.

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.

Net realizable value is considered to be the best measure of the expected contribution of each product to the coverage of joint costs.

The net realizable value approach is used to account for scrap and by-products when the net realizable value is insignificant.

The net realizable value approach is used to account for scrap and by-products when the net realizable value is significant.

Under the realized value approach,no value is recognized for by-products or scrap until they are actually sold.

Under the net realizable value approach,no value is recognized for by-products or scrap until they are actually sold.

Not-for-profit entities are required to allocate joint costs among fund-raising,program,and administrative functions.

A single process in which one product cannot be manufactured without producing others is referred to as a _________________________.

Costs that are incurred in the manufacture of two or more products from a common process are referred to as _________________________.

Costs that are incurred after the split-off point in a production process are referred to as ______________________________.

Three types of products that result from a joint process are _________________________,____________________,and ____________________.

Two incidental products of a joint process are ____________________ and ____________________.

The point at which individual products are first identifiable in a joint process is referred to as the _________________________.

Two methods of allocating joint costs to individual products are ________________________________________ and ________________________________________.

Three monetary measures used to allocate joint costs to products are ________________________________________,________________________________________,and ____________________________________________________________.

Sales revenue at split-off less disposal costs equals ______________________________.

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.

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.

Joint costs are allocated to which of the following products? A)yes yes B)yes no C)no no D)no yes

Joint cost allocation is useful for A)decision making. B)product costing. C)control. D)evaluating managers' performance.

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.

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

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.

Joint costs are most frequently allocated based upon relative A)profitability. B)conversion costs. C)prime costs. D)sales value.

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.

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.

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.

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.

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.

Which of the following is/are synonyms for joint products? A)no no B)yes yes C)yes no D)no yes

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

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.

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.

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.

Which of the following has sales value? A)no no B)yes no C)yes yes D)no yes

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.

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.

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.

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.

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

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.

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.

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

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.

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

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

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.

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

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.

Relative sales value at split-off is used to allocate A)yes yes B)yes no C)no yes D)no no

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.

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.

Not-for-profit organizations are required by the ____ to allocate joint costs. A)AICPA B)FASB C)CASB D)GASB

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

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

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.

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.

Briefly discuss the four decisions that management must make concerning joint processes.

Briefly discuss the six steps in the allocation process.

Discuss briefly the three monetary measurement techniques of joint cost allocation.

Briefly discuss the restrictions and requirements on service organizations and not-for-profits that relate to joint cost allocation.

Briefly discuss the net realizable value at split-off point method of allocating joint costs.

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?

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?

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?

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?

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?

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.

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:

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.

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:

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:

Bolton Company produced three joint products at a joint cost of $100,000.These products were processed further and sold as follows: