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40% found this document useful (5 votes)
20K views15 pages
08 Costing By-Products & Joint Products
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08 Costing By-Products & Joint Products.doc
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Denise Villanueva
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22.Jeffrey Co. manufactures Products A and B from a joint process. Market value at split-off was$700,000 for 10,000 units of A, and $300,000 for 15,000 units of B. Using the market value atsplit-off approach, joint costs properly allocated to A were $140,000. Total joint costs were:
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23.A company produces three main joint products and one by-product. The by-product's relativemarket value is quite low compared to that of the main products. The preferable accountingfor the by-product's net realizable value is as:
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24.A company manufactures Products X and Y using a joint process. The joint processing costsare $10,000. Products X and Y can be sold at split-off for $12,000 and $8,000 respectively.After split-off, Product X is processed further at a cost of $5,000 and sold for $21,000,whereas Product Y is sold without further processing. If the company uses the market valuemethod for allocating joint costs, the joint cost allocated to X is:A.$4,000B.$5,000C.$6,000D.$6,667E.none of the above
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B22.Jeffrey Co. manufactures Products A and B from a joint process. Market value at split-off was $700,000 for 10,000 units of A, and $300,000 for 15,000 units of B. Using themarket value at split-off approach, joint costs properly allocated to A were $140,000.Total joint costs were:
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C23.A company produces three main joint products and one by-product. The by-product'srelative market value is quite low compared to that of the main products. Thepreferable accounting for the by-product's net realizable value is as:24.A company manufactures Products X and Y using a joint process. The jointprocessing costs are $10,000. Products X and Y can be sold at split-off for $12,000
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and $8,000 respectively. After split-off, Product X is processed further at a cost of$5,000 and sold for $21,000, whereas Product Y is sold without further processing. Ifthe company uses the market value method for allocating joint costs, the joint costallocated to X is:A.$4,000B.$5,000C.$6,000D.$6,667E.none of the above
Answer:
The characteristic that is most often used to distinguish a product as either a main product or a by-product is the amount of: sales value of the products produced during the common production process.
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