Exam 7: Cost Allocation: Departments, Joint Products, and By-Products

The total cost accumulated in the assembly department using the direct method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Revenue methods of by-product cost allocation are justified on financial accounting concepts of:

The concepts of cost allocation that are used in manufacturing can also apply in:

Which of the following is an example of a physical measure used in the physical measure method?

The amount of joint costs allocated to product X using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

The amount of joint costs allocated to product DBB-2 using the net realizable value method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):

The amount of joint costs allocated to product DBB-1 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):

By-product costing approaches include:

Which of the following is an advantage of the sales value at split-off method?

A key ethical issue in cost allocation involves costing in an international context, because the choice of a cost allocation method can affect:

The total cost accumulated in the finishing department using the direct method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Which of the following is not a "production" department in a service firm?

Johns Company manufactures products R, S, and T from a joint process. The following information is available: Assuming that joint product costs are allocated using the relative-sales-value at split-off approach, what was the sales value at split-off for products R and S?

The amount of joint costs allocated to product DBB-2 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):

Place the following phases of the departmental approach in the correct order. 1. Allocate the production department costs to products. 2) Allocate service costs to the overhead costs. 3) Allocate the service department costs to the production department. 4) Trace all direct costs and allocate overhead costs to both the service and production departments.

The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

The amount of joint costs allocated to product DBB-1 using the sales value at split-off method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):

Which of the following statements best describes a by-product?

The Chapman Manufacturing Company has two service departments - manufacturing support and facilities management, and two production departments - assembly and packing/shipping. The distribution of each service department's efforts to the other departments is shown below: The direct operating costs of the departments (including both variable and fixed costs) were as follows: Required: (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar): (1) Allocate the service department costs to the production departments using the direct method. (2) Allocate the service department costs to the production departments using the step method with the support department going first. (3) Allocate the service department costs to the production departments using the reciprocal method.

For the purposes of cost accumulation, which of the following are identifiable as different individual products before the split-off point?