Exam 11: Service Department and Joint Cost Allocation

One reason to allocate service department costs to user departments is to encourage the user departments to monitor their use of the service department costs.

The estimated net realizable value for a product is its estimated selling price after processing the product beyond the split-off point.

Raymer Corporation produced 3,660 units,consisting of three separate products,in a joint process for the year.The market for these products was so unstable that it was not practical to estimate the selling price of the products.A cost of $425,000 was incurred in the joint process.Product X's production was 80% of product Y's while product Z's production was 125% of product Y's.What is the amount of the joint cost allocable to product X assuming Raymer uses the physical quantities method of allocation?

Which of the following is not a physical measure that can be used for allocating joint costs using the physical quantities method?

What is the Accounting Department's cost allocated to Department B using the direct method?

If the estimated net realizable value method is used and product Q is accounted for as a main product,how much of the joint costs would be allocated to product R?

Great Falls Company makes two products,G and H.They are initially processed from the same raw material and then,after split-off,further processed separately.Additional information is as follows: What are the joint costs allocated to products G and H assuming Great Falls uses the estimated net realizable value approach?

Using the simultaneous solution method,department B's cost allocated to department C is

Product C is one of several joint products that come out of Department M.The joint costs incurred in Department M total $40,000.Product C can be sold at split-off or processed further and sold as a higher quality item.The decision to process further should be based on the

Using the most appropriate allocation basis,what is the personnel cost allocated to Division A?