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Joint costing

Authored by Pim Chi

Business

University

Used 6+ times

Joint costing
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11 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

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

A) before the splitoff point

B) after the splitoff point

C) at the splitoff point

D) at the end of production

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

2) When a single manufacturing process yields two products, one of which has a relatively high sales value compared to the other, the two products are respectively known as:

A) joint products and byproducts

B) joint products and scrap

C) main products and byproducts

D) main products and joint products

 

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

3) When a joint production process yields two or more products with high total sales values, these products are called:

A) main products

B) joint products

C) byproducts

D) scrap

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

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

A) Sales value at splitoff method

B) Estimated net realizable value method

C) The constant gross-margin percentage method

D) All of these answers are correct.

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

5) Athens Company processes 15,000 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $8 per gallon and Product Y, the main product, sells for $100 per gallon. The following information is for August:

 

                                                                   Beginning            Ending

                 Production               Sales       Inventory       Inventory

Product X:          4,375               4,000                      0                  375

Product Y:        10,000               9,625                  125                  500

 

The manufacturing costs totaled $30,000.

 What is the byproduct's net revenue reduction if byproducts are recognized in the general ledger during production and their revenues are a reduction of cost?

A) $0

B) $3,000

C) $32,000

D) $35,000

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

6) Athens Company processes 15,000 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $8 per gallon and Product Y, the main product, sells for $100 per gallon. The following information is for August:

 

                                                                   Beginning            Ending

                 Production               Sales       Inventory       Inventory

Product X:          4,375               4,000                      0                  375

Product Y:        10,000               9,625                  125                  500

 

The manufacturing costs totaled $30,000.

How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?

A) $0

B) $563

C) $1,500

D) $17,500

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

7) Athens Company processes 15,000 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $8 per gallon and Product Y, the main product, sells for $100 per gallon. The following information is for August:

 

                                                                   Beginning            Ending

                 Production               Sales       Inventory       Inventory

Product X:          4,375               4,000                      0                  375

Product Y:        10,000               9,625                  125                  500

 

The manufacturing costs totaled $30,000.

A negative consequence of recording byproducts in the accounting records when the sale occurs is that:

A) the revenue from the byproducts is usually fairly large, and the accounting records will be distorted

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

C) managers have an incentive to stockpile byproducts

D) Both B and C are correct.

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