Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Brite Surface Company Brite Surface 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 Brite Surface 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 Brite Surface Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product E?

Accepted Answer

A)  $4,433 
B)  $1,182 
C)  $1,108 
D)  $2,276 
A)  $4,433 
B)  $1,182 
C)  $1,108 
D)  $2,276

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Johnson Company Ellis 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 Johnson Company. Using a physical measure, what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?

Accepted Answer

A)  $3,682 
B)  $4,500 
C)  $5,318 
D)  $6,062 
A)  $3,682 
B)  $4,500 
C)  $5,318 
D)  $6,062

Question 5

Roper 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.
Roper 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:

Accepted Answer

The answer of Roper Corporation manufactures three identifiable product lines,...

Question 6

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?

Accepted Answer

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. 
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.

Question 7

Brite Surface Company Brite Surface 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 Brite Surface 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 Brite Surface Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product C?

Accepted Answer

A)  $4,433 
B)  $2,276 
C)  $1,108 
D)  $1,182 
A)  $4,433 
B)  $2,276 
C)  $1,108 
D)  $1,182

Question 8

Johnson Company Ellis 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 Johnson Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?

Accepted Answer

A)  $2,938 
B)  $3,682 
C)  $4,500 
D)  $6,062 
A)  $2,938 
B)  $3,682 
C)  $4,500 
D)  $6,062

Question 9

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

Accepted Answer

The answer of Costs that are incurred in the manufacture...

Question 10

Johnson Company Ellis 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 Johnson Company. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?

Accepted Answer

A)  $2,718 
B)  $4,500 
C)  $6,062 
D)  $6,282 
A)  $2,718 
B)  $4,500 
C)  $6,062 
D)  $6,282

Question 11

Sun Glo Company Sun Glo 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. Sun Glo 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 Sun Glo Company. Assume that Sun Glo 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?

Accepted Answer

A)  $911 
B)  $14,244 
C)  $13,333 
D)  $30,000 
A)  $911 
B)  $14,244 
C)  $13,333 
D)  $30,000

Question 12

All costs that are incurred between the split-off point and the point of sale are known as

Accepted Answer

A)  sunk costs. 
B)  incremental separate costs. 
C)  joint cost. 
D)  committed costs. 
A)  sunk costs. 
B)  incremental separate costs. 
C)  joint cost. 
D)  committed costs.

Question 13

The split-off point is the point at which

Accepted Answer

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)  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.

Question 14

If two or more products share a common process before they are separated, the joint costs should be assigned in a manner that

Accepted Answer

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. 
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.

Question 15

Hairell 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

Accepted Answer

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. 
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.

Question 16

When allocating joint process cost based on tons of output, all products will

Accepted Answer

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. 
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.

Question 17

Relative sales value at split-off is used to allocate

Accepted Answer

A)  yes yes 
B)  yes no 
C)  no yes 
D)  no no 
A)  yes yes 
B)  yes no 
C)  no yes 
D)  no no

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

sales value at split-off; net

Question 20

Sun Glo Company Sun Glo 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. Sun Glo 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 Sun Glo Company. Using gallons as the physical measurement, what amount of joint processing cost is allocated to Product S?

Accepted Answer

A)  $2,196 
B)  $1,171 
C)  $1,367 
D)  $ 732 
A)  $2,196 
B)  $1,171 
C)  $1,367 
D)  $ 732

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.

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?

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

All costs that are incurred between the split-off point and the point of sale are known as

The split-off point is the point at which

If two or more products share a common process before they are separated, the joint costs should be assigned in a manner that

Hairell 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

When allocating joint process cost based on tons of output, all products will

Relative sales value at split-off is used to allocate

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

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

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Introduction to Cost Management Systems

Responsibility Accounting, Support Department Allocations, and Transfer Pricing

Performance Measurement, Balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

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

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.

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?

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

All costs that are incurred between the split-off point and the point of sale are known as

The split-off point is the point at which

If two or more products share a common process before they are separated, the joint costs should be assigned in a manner that

Hairell 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

When allocating joint process cost based on tons of output, all products will

Relative sales value at split-off is used to allocate

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

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

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Introduction to Cost Management Systems

Responsibility Accounting, Support Department Allocations, and Transfer Pricing

Performance Measurement, Balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

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