joint product costing

Question 1

joint production process

Answer 1

Some manufacturing plants yield more than one product from a common resource input

Question 2

split off point

Answer 2

point in a joint production process at which individual products can be identified for the first time

Question 3

joint costs include…

Answer 3

al manufacturing costs incurred prior to split-off point

Question 4

separable processing costs

Answer 4

Costs incurred after the split-off point

Question 5

3 methods commonly used to allocate joint product costs

Answer 5

Physical measures
Net realizable values (NRV) of the products
By-Product Method

Question 6

NRV method can be used when…

Answer 6

joint products cannot be sold at split-off

Question 7

NRV determined by…

Answer 7

subtracting additional processing and selling costs beyond the split-off point from the estimated ultimate sales value of the product

Question 8

decision to sell before or after additonal processing

Answer 8

If the increase in sales value is less than the additional cost, then sell at split-off point