1. Give two examples of industries in which joint costs are found. For each example, what are the individual products at the splitoff point?.

Q: Are allocated joint processing costs relevant when making a decision to sell a joint product at the…

A: Definition: Joint production process: A joint production process results in two or more products,…

Q: REQUIRED:  Compute the weighted units and cost per unit of each product.

A: Weighted Units = Points x Units Cost per Unit = Apportioned Production CostUnits Produced

Q: Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision. What…

A: Joint costs are the costs which are incurred jointly in the production process for two or more…

Q: Give two examples in which the difference in the costs of two products or services is much smaller…

A: The difference in cost in providing railway travel to a tourist and to a business person is nil.The…

Q: “Sunk costs are considered by a manufacturer in decision making”. Do you agree? Explain.

A: "Sunk costs are considered by a manufacturer in decision making”. I do not agree with this…

Q: Why aren’t common fixed costs allocated to segments under the contribution approach?

A: Contribution approach income statement segregates variable and fixed costs. In this approach…

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: 1. How will you allocate the fixed costs across the products?

A: Break-even refers to covering all the costs without making a profit. At break-even point company…

Q: Give two examples of industries in which joint costs are found. For each example, what are the…

A: A joint cost is a cost incurred in a joint process. Joint costs may include direct material, direct…

Q: Give two examples of industries in which joint costs are found.For each example , what are the…

A: Joint costs: Joint costs are incurred while producing multiple products simultaneously.

Q: Describe a situation in which the sales value at splitoff method cannot be used but the NRV method…

A: Relative Sales Value at Split off Method: Relative sales value at split off method allocates joint…

Q: 1. What is the unit product cost under absorpotion costing? 2. What is the unit product cost…

A:

Q: What is the difference between a direct cost and an opportunity cost.  Can you show the difference…

A: Direct cost and opportunity cost are two types of costs used in cost accounting.

Q: Required: Compute and allocate the total joint cost to three products using: a) Physical unit…

A: Joint cost is that cost which is incurred commonly by the Business Entity, to produce 2 or more…

Q: The following are approaches in allocating joint costs incurred up to split off point, except:   a.…

A: Solution: The following are approaches in allocating joint costs incurred up to split off point,…

Q: Under full absorption costing, which of the following are included in product costs? Only variable…

A: The absorption costing system is also known as the full costing system. It is allowed to be used by…

Q: The amount of joint costs allocated to product DBB-3 using the sales value at split-off method is ר…

A:

Q: Describe how total variable costs and unit variable costs behave with changes in the level of…

A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…

Q: Which of the following methods allocates joint costs based on the potential market value at the…

A: Joint cost represents the cost incurred by the business in a joint process. In such process, single…

Q: Products G and H are joint products developed from the same process with each being processed…

A: Gross margin is calculated  as follows  = (sales - cost of goods sold)/sales

Q: Under absorption costing, how is it possible to increase net operating income without increasing…

A: Format of Income Statement under Absorption Costing

Q: Why might the number of products in a joint cost situation differ from the number of outputs?

A: Products: Product is anything that has a worth or which is capable of being bought and sold in the…

Q: Cost-volume-profit (CVP) analysis is based entirely on unit costs.” Do you agree? Explain.

A: Cost-volume-profit (CVP) analysis represents the method of cost accounting that shows the impact…

Q: Which of the following choices correctly denotes the data needed to allocate joint costs under the…

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

Q: 1. What is the net income under variable costing method? 2. What is the net income under absorption…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: If JIT manufacturing is used and each manufacturing cell produces a single product, which of the…

A: The costs incurred in the manufacturing process can be classified as direct or indirect cost. The…

Q: For joint cost allocation: only the net realizable method can be used to allocate joint costs to…

A: Joint Cost Allocation This is generally manufacturing cost which is in joint production process and…

Q: Define the term break-even point. What is the variable cost ratio? The contribution margin ratio?…

A: 1. Break-even point: It is a point where the total costs and the total sales of a company are said…

Q: When materials costs differ significantly among products in a value stream, the valuestream product…

A: In contrast to traditional costing, value stream costing is an accounting technique for tracking…

Q: Combine the different component costs to determine the firm’s WACC.

A: WACC is the organization  cost of capital in which each component (debt and equity) is considered on…

Q: Determine the amount of joint cost allocated to each product if the sales value at splitoff method…

A: Computation of joint cost allocated based on split off is shown below :

Q: How would you define fixed and variable product costs? How are these costs used in determining the…

A: Cost of production is the total cost involved in producing a particular volume of products. These…

Q: Provide three reasons for allocating joint costs to individual products or services.

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

Q: If the units produced and unit sales are equal, which method would you expect to show the highernet…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: Allocating costs for joint products can be done by: a. Sales Value Approach O b. Contribution Margin…

A: Joint Products:- Joint products are defined as the products that are produced in a single production…

Q: What is the primary advantage of separately allocating fixed and variable indirect costs?

A: Solution Concept Fixed cost               Fixed cost are those cost which does not change with the…

Q: Give the general formula for a mixed cost.  What does each term represent?

A: Given: The general formula for the mixed cost is given.

Q: What does the term sales mix mean? How is a weighted-average unit contribution margin computed?

A: Contribution Margin is defined as the difference between the sales and the variable cost. In other…

Q: Identify the relative advantages and disadvantages of basing transfer prices on total costs,…

A: Please find the answers to the above questions below:

Q: When units produced equal units sold, how does operating income differ between variable costing and…

A: Definition: Absorption Costing: It is a method of cost accounting where all the costs are related to…

Q: Why might the number of products in a joint - cost situation differ from the number of outputs? Give…

A: Products: Product is anything which has a worth or which is capable of being bought and sold in the…

Q: a. What amount of joint product cost would be allocate to each product? b. What is financial…

A: Lets understand the basics. For allocating joint process cost, there are various methods are…

Q: hen it comes to all

A: Under the weighted average method of joint cost allocation, certain defined weight factors are…

Q: same industry for same product b.the same firm for same product c.the several firm for same…

A: b. Multiple costing is a technique of using two or more costing methods for ascertainment of cost by…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.