how to allocate the cost of joint products and byproducts?

Q: What is Unit-Profit or Unit-Cost Calculation?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: What are joint costs? How do they affect the sell or process further decision?

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Q: January 1, 2020 December 31, 2020 Direct materials $40,000 $60,000 Work in process 80,000 50,000…

A: Direct material used = Beginning Direct material + Direct material purchased -  ending Direct…

Q: Define cost-volume-profit analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Of the various methods used to allocate joint costs, which makes the most sense to you?

A: In accounting a joint cost is referred to as that cost that is related to more than one product.…

Q: What are the Nonmanufacturing costs?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Define how costs of goods and other costs such as taxes contribute to the performance besides sales?

A: Performance of the business is usually measured by the ability of the company to generate the net…

Q: ABC Company produces two main products and a by-product out of a joint process. The ratio of output…

A: When joint cost are to be allocated using the physical units method, the net joint cost shall be…

Q: What is a joint cost? What is a separable cost?

A: Joint Cost: Joint cost is a cost accounting term, which is referred to common costs incurred in…

Q: role of the cost and its impact on profitability?

A: Costing is an important process that businesses use to determine the cost of producing goods and…

Q: How is contribution margin calculated?

A: Contribution margin means sales revenue over and above the variable costs of production and selling…

Q: How would you decide how to allocate indirect costs to the divisions? Why?

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Q: Define Joint costs?

A: Joint Products: When two are more products are produced in a process using the same basic raw…

Q: What are Joint Costs?

A: The entity incurs different types of costs while carrying out its day-to-day operations. When a…

Q: What is the difference between joint costs and common costs?

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products,…

A: Calculation of net realizable value Products Sale value Separable cost NRV per unit gallon Total…

Q: what is meant by Capitalized cost?

A: Capitalized cost is a cost which is incurred in purchasing the fixed asset or making the fixed asset…

Q: What is the total cost of ownership concept? What are some of the challenges that must be overcome…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: From a decision-making point of view, should joint costs be allocated among joint products?

A: Joint products means products which use the same resources and are made in the same process. For…

Q: What is the Total joint costs?

A: Formula: Total sales values at split off = Product Y Sales value + Product Z sales value.

Q: Define the term net realizable value, and explain how this concept can be used to allocate joint…

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Q: Why are product costs also called inventoriable costs?

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: What are “initial direct costs” and how are they accounted for by lessees and lessors?

A: Initial Direct Costs: Initial direct costs refer to the costs that a lessor incurs directly while a…

Q: What are the Cost Product Cost and External Financial reporting?

A: The objective of this question is to understand the concepts of Product Cost and External Financial…