By/joint Product

1) The focus of joint costing is on allocating costs to individual products:

• A. before the split-off point

• B. after the split-off point

• C. at the split-off point

• D. at the end of production

2) Which of the following methods of allocating costs use market-based data?

• A. Sales value at split-off method

• B. Estimated net realizable value method

• C. The constant gross-margin percentage method

• D. All of these answers are correct.

3) A reason why a physical-measure to allocate joint costs is less preferred than the sales value at splitoff is:

• A. a physical measure for each joint product could be different

• B. physical volume usually has little relationship to the revenue producing power of products

• C. a physical measure usually results in the costs being allocated to the product that weighs the most

• D. All of these answers are correct.

4) The Arvid Corporation manufactures widgets, gizmos, and turnbols from a joint process. May production is 2,000 widgets; 3,500 gizmos; and 4,000 turnbols. Respective per unit selling prices at split-off are $30, $20, and $10. Joint costs up to the split-off point are $75,000. If joint costs are allocated based upon the sales value at split-off, what amount of joint costs will be allocated to the widgets?

• A. $30,882

• B. $26,471

• C. $17,647

• D. $28,125

5) Athens Company’ s production yields two products, Product X and Product Y. Product X (by product) can be sold at $8 unit [very stable price] and Product Y, the main product, can be sold at $100 per units. The following information is for August:

 

                                                                                Beginning         Ending

                 Production (units)              Sales       Inventory       Inventory

Product X:          4,375                           4,000                      0                  375

Product Y:        10,000                           9,625                  125                  500

 

The joint manufacturing costs totaled $30,000.

How much will the production cost of main products decrease if proceeds from sales of by-products are only recognized as other revenues?

• A. $0

• B. $563

• C. $1,500

• D. $17,500

6) Athens Company’ s production yields two products, Product X and Product Y. Product X (by product) can be sold at $8 unit [very stable price] and

Product Y, the main product, can be sold at $100 per units. The following information is for August:

 

                                                                                Beginning         Ending

                 Production (units)              Sales       Inventory       Inventory

Product X:          4,375                           4,000                      0                  375

Product Y:        10,000                           9,625                  125                  500

 

The joint manufacturing costs totaled $30,000.

How much is the proceed from sales of by-products recognized as other revenues?

• A. $0

• B. $32,000

• C. $1,500

• D. $17,500

7) Athens Company’ s production yields two products, Product X and Product Y. Product X (by product) can be sold at $8 unit [very stable price] and

Product Y, the main product, can be sold at $100 per units. The following information is for August:

 

                                                                                Beginning         Ending

                 Production (units)              Sales       Inventory       Inventory

Product X:          4,375                           4,000                      0                  375

Product Y:        10,000                           9,625                  125                  500

 

The joint manufacturing costs totaled $30,000.

"A negative consequence of recording byproducts as other revenues only when the sale occurs is ...."

• A. Overstated Production Costs for Main Products

• B. managers can time earnings by their decision when to sell byproducts

• C. Understated Production Costs for Main Products

• D. Both A and B are correct.

• D. Both B and C are correct.

8) Calculate Joint costs allocated to Benzin using the physical measure method.

• A. 7,100,000 Baht

• B. 6,900,000 Baht

• C. 7,500,000 Baht

• D. 6,500,000 Baht

9) Using the physical-measure to allocate joint costs, What is the gross margin of Bensin, Fuel,  Diesel and Furnace oil?

• A. 53.13%, 6.25%, 20% and 3.2%

• B. 53.13%, 6.25%, 21.88% and 1.32%

• C. 53.13%, 6.25%, 15% and 25.63%

• D. 53.13%, 6.25%, 14% and 26.63%

10) Calculate Joint costs allocated to Diesel using the sales value at split-off point method.

• A. 8,500,880 Baht

• B. 8,300,995 Baht

• C. 8,291,885 Baht

• D. 8,591,885 Baht