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Indicate Whether the Following Costs Would Be Treated as Joint-Product

Question 18

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Indicate whether the following costs would be treated as joint-product costs or costs incurred after the split-off point.Use J for joint product costs and S for costs incurred after the split-off point.

Premises:
Costs of chopping onions to be used in spaghetti sauce and soup in a food manufacturer
Cost of processing wood and sawdust into particle board in a sawmill
Costs of processing apples at a cider mill
Cost of processing rejected meat parts into hot dogs in a meat processing plant
Costs of processing pineapples into juice and sliced pineapples
Costs of refining gasoline in (d) above
Costs of running a fishing boat used to catch varieties of fish, lobsters, etc.
Labor costs, of “shucking” clams to produce clam chowder
Utility costs of processing timber for a lumber manufacturer
Cost of planting, growing and picking pineapples in a pineapple factory
Ingredients and packaging added to batches of spaghetti in (g) above
Processing of pulp into paperboard in a paper manufacturer
Depreciation on oil rigs for an oil producer
Responses:
joint product costs
costs incurred after the split-off point

Correct Answer:

Costs of chopping onions to be used in spaghetti sauce and soup in a food manufacturer
Cost of processing wood and sawdust into particle board in a sawmill
Costs of processing apples at a cider mill
Cost of processing rejected meat parts into hot dogs in a meat processing plant
Costs of processing pineapples into juice and sliced pineapples
Costs of refining gasoline in (d) above
Costs of running a fishing boat used to catch varieties of fish, lobsters, etc.
Labor costs, of “shucking” clams to produce clam chowder
Utility costs of processing timber for a lumber manufacturer
Cost of planting, growing and picking pineapples in a pineapple factory
Ingredients and packaging added to batches of spaghetti in (g) above
Processing of pulp into paperboard in a paper manufacturer
Depreciation on oil rigs for an oil producer
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