Joint Cost Allocation—Market Value at Split-off Method Man O’Fort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $28,000 per batch and producing 2,200 standard door handles and 1,100 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for $6 per door handle and the curved style for $3 per door handle. Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method. Joint Product Allocation Standard door handle $fill in the blank 1 Curved door handle fill in the blank 2 Totals $fill in the blank 3
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Joint Cost Allocation—Market Value at Split-off Method
Man O’Fort Inc. produces two different styles of door handles, standard and
Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.
| Joint Product | Allocation |
| Standard door handle | $fill in the blank 1 |
| Curved door handle | fill in the blank 2 |
| Totals | $fill in the blank 3 |
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