1. Joint Costs are:a. Indivisibleb. Present throughout the production process of joint productsC. Common costsd. A collection of direct materials, direct labor and manufacturing overhead costs thatserve as the primary base for establishing a sales value for joint products2. For purposes of allocating joint costs to joint products, the relative sales value at split-offmethod could be used in which of the following situations?a.b.C.d.No Cost Beyond Split -off Cost beyond Split -OffYesYesYesNoNoYesNoNo3. The allocation of joint costs to individual products is useful primarily for the purposes of:a. Determining whether to produce one of the joint productsb. Determining the best market valuec. Inventory costingd. Deciding whether to sell at the split-off point4. Which of the following statement best describe a by product125a. A product that usually produces a small amount of revenue when compared to themain product revenueb. A product that does not bear any portion of the joint processing costsc. A product that is produced from material that would otherwise be scrapd. A product that has a lower unit selling price the main product5. Cost to be incurred after the split-off point are most useful for:a. Adjusting inequities in the joint cost allocation procedureb. Determining the levels of joint productionc. Assessing the desirability of further processingd. Setting the mix of output products

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

1. Joint Costs are: a. Indivisible b. Present throughout the production process of joint products c. Common costs d. A collection of direct materials, direct labor and manufacturing overhead costs that serve as the primary base for establishing a sales value for joint products

1. Joint Costs are: a. Indivisible b. Present throughout the production process of joint products c. Common costs d. A collection of direct materials, direct labor and manufacturing overhead costs that serve as the primary base for establishing a sales value for joint products

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

1. Joint Costs are:
a. Indivisible
b. Present throughout the production process of joint products
C. Common costs
d. A collection of direct materials, direct labor and manufacturing overhead costs that
serve as the primary base for establishing a sales value for joint products
2. For purposes of allocating joint costs to joint products, the relative sales value at split-off
method could be used in which of the following situations?
a.
b.
C.
d.
No Cost Beyond Split -off Cost beyond Split -Off
Yes
Yes
Yes
No
No
Yes
No
No
3. The allocation of joint costs to individual products is useful primarily for the purposes of:
a. Determining whether to produce one of the joint products
b. Determining the best market value
c. Inventory costing
d. Deciding whether to sell at the split-off point
4. Which of the following statement best describe a by product
125
a. A product that usually produces a small amount of revenue when compared to the
main product revenue
b. A product that does not bear any portion of the joint processing costs
c. A product that is produced from material that would otherwise be scrap
d. A product that has a lower unit selling price the main product
5. Cost to be incurred after the split-off point are most useful for:
a. Adjusting inequities in the joint cost allocation procedure
b. Determining the levels of joint production
c. Assessing the desirability of further processing
d. Setting the mix of output products

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