Question 1

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

Accepted Answer

The answer of A single process in which one product...

Question 2

Incremental revenues and costs need to be considered when using which allocation method?
$\text {\underline{Physical measures} }$           $\text {\underline{ Sales value at split-of} }$

Accepted Answer

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

Question 3

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

Accepted Answer

physical measurement

Question 4

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 5

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?

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 6

Chambers Company
Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.
                     Yards        Sales price per yard at split-off       Disposal cost per yard at split-off      Further processing per yard        Final sale price per yard                 X       1,500       $6.00       $3.50       $1.00       $ 7.50               Y       2,200        9.00        5.00        3.00        11.25      
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)?

Accepted Answer

A) $5,500 
B) $4,000 
C) $2,500 
D) $4,757 
A) $5,500 
B) $4,000 
C) $2,500 
D) $4,757

Question 7

Incremental separate costs are defined as all costs incurred between ____ and the point of sale.

Accepted Answer

A) inception 
B) split-off point 
C) transfer to finished goods inventory 
D) point of addition of disposal costs 
A) inception 
B) split-off point 
C) transfer to finished goods inventory 
D) point of addition of disposal costs

Question 8

Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
                     Yards        Sales price per yard at split-off      Disposal cost per yard at split-off        Further processing per yard          Final sale price per yard               A       1,800       $7.00       $4.50       $1.50       $ 8.00               C       2,600        10.00        6.00        3.50        12.25      
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)?

Accepted Answer

A) $4,500 
B) $5,986 
C) $6,062 
D) $6,282 
A) $4,500 
B) $5,986 
C) $6,062 
D) $6,282

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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. )
                   Barrels          Sales price per barrel at split-off      Disposal cost per barrel at split-off          Further processing costs       Final sales price per barrel              C         750       $10.00       $6.50       $2.00       $13.50               D       1,000        8.00       4.00       2.50       10.00               E       1,400        11.00       7.00       4.00       15.50               G       2,000      15.00        9.50       4.50       19.50      
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?

Accepted Answer

A) $1,748 
B) $2,447 
C) $1,311 
D) $3,495 
A) $1,748 
B) $2,447 
C) $1,311 
D) $3,495

Question 11

Three monetary measures used to allocate joint costs to products are ____________,________,and ______

Accepted Answer

sales value at split-off;net r

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Accepted Answer

The four decisions that managers must ma

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

Incremental revenues and costs need to be considered when using which allocation method? $\text {\underline{Physical measures} }$ $\text {\underline{ Sales value at split-of} }$

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

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?

Incremental separate costs are defined as all costs incurred between ____ and the point of sale.

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

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

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

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

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

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

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

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

	Yards	Sales price per yard at split-off	Disposal cost per yard at split-off	Further processing per yard	Final sale price per yard
X	1,500	$6.00	$3.50	$1.00	$ 7.50
Y	2,200	9.00	5.00	3.00	11.25

	Barrels	Sales price per barrel at split-off	Disposal cost per barrel at split-off	Further processing costs	Final sales price per barrel
C	750	$10.00	$6.50	$2.00	$13.50
D	1,000	8.00	4.00	2.50	10.00
E	1,400	11.00	7.00	4.00	15.50
G	2,000	15.00	9.50	4.50	19.50

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

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

Incremental revenues and costs need to be considered when using which allocation method? Physical measures‾ \text {\underline{Physical measures} }Physical measures​ Sales value at split-of‾ \text {\underline{ Sales value at split-of} } Sales value at split-of​

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

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?

Incremental separate costs are defined as all costs incurred between ____ and the point of sale.

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

Three monetary measures used to allocate joint costs to products are ____________,________,and ______

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

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

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

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

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

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

Incremental revenues and costs need to be considered when using which allocation method? $\text {\underline{Physical measures} }$ $\text {\underline{ Sales value at split-of} }$

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

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