Joint Costing

These are secondary products obtained incidentally in the process of manufacturing the main product

• Joint products

• By-products

• Scrap

• Co-products

I: In the Realized Value Approach or Sales Method, the sale of by-products is recognized only upon the actual sale.

II: There can only be one split-off point in every output produced.

• Both statements are true

• Only Statement I is true

• Both statements are false

• Only statement II is true

If the joint cost for the period is PHP300,000, find the allocated amount for product EE. Use the Units of Production Method. (do not include units in the final answer)

If the joint cost for the period is PHP300,000, find the allocated amount for product AA. Use the Quantitative Measurement Method. (do not include units in the final answer)

The formula of Net Realizable value is:

• Sales Price - Disposal Cost

• Sales Price - Joint Cost

• Product Sales Revenue - Allocated Cost

• Product Sales Revenue - Total Expected Revenue

A type of allocation method where units produced must be measured in terms and units produced are in the same units of measurement.

• Physical Method

• Quantitative Method

• Weighted Average Method

• Physical Quantitative Method

Which of the following are not part of the methods used under monetary measure allocation

• Sales Value at Split-Off Method

• Net Realizable Value Method

• Alternative NRV Method or Approximated/Hypothetical NRV Method

• Quantitative Measurement Method

When production is completed, Work in Process – Joint Products for the joint products shall be debited and Work in Process – By-Product or Scrap is credited at its Net Realizable Value.

• True

• False

When production is completed, Work in Process – Joint Products for the joint products shall be debited and Work in Process – By-Product or Scrap is credited at its Net Realizable Value.

• True

• False

By-product has no sales value, but any expense incurred related to it will be recognized.

• True

• False