![NEW MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting](https://www.bartleby.com/isbn_cover_images/9780133437287/9780133437287_largeCoverImage.gif)
NEW MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
10th Edition
ISBN: 9780133437287
Author: Walter T. Harrison Jr., Charles T. Horngren, C. William Thomas
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 16, Problem 16.1Q
Give two examples of industries in which joint costs are found. For each example, what are the individual products at the splitoff point?
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
To determine
Joint Cost:
Joint cost is a cost accounting term, which is referred to common costs incurred in purchasing or in the process of producing multiple products.
Split-off Point:
Split-off point is the point in production process where joint products are capable of being distinguished individually.
To identify: Examples of industries in which joint costs are found.
Answer to Problem 16.1Q
Given below are the examples of industries where joint costs are found:
- Dairy Food Industry – Products are milk, cream, butter, cheese yogurt, whey and milk powder
- Sugar industries – Products are sugar, brown sugar, bagasse and molasses, rum and filter cake.
Explanation of Solution
- Joint costs are incurred in combination and therefore it is difficult to identify the cost of individual products.
- Whereas after split-off point it is easy to identify the costs of products individually.
Conclusion
Hence, dairy food industry and sugar industry are one of the industries where joint costs are found.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Give two examples of industries in which joint costs are found.For each example , what are the individual products are at the splitoff point?
Give two examples of industries in which joint costs are found. For each example, what are the individual products at the splitoff point?
Why might the number of products in a joint - cost situation differ from the number of outputs? Give an example.
Chapter 16 Solutions
NEW MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
Ch. 16 - Give two examples of industries in which joint...Ch. 16 - What is a joint cost? What is a separable cost?Ch. 16 - Distinguish between a joint product and a...Ch. 16 - Why might the number of products in a joint-cost...Ch. 16 - Provide three reasons for allocating joint costs...Ch. 16 - Why does the sales value at splitoff method use...Ch. 16 - Prob. 16.7QCh. 16 - Distinguish between the sales value at splitoff...Ch. 16 - Give two limitations of the physical-measure...Ch. 16 - How might a company simplify its use of the NRV...
Ch. 16 - Why is the constant gross-margin percentage NRV...Ch. 16 - Managers must decide whether a product should be...Ch. 16 - Prob. 16.13QCh. 16 - Describe two major methods to account for...Ch. 16 - Why might managers seeking a monthly bonus based...Ch. 16 - Prob. 16.16ECh. 16 - Prob. 16.17ECh. 16 - Prob. 16.18ECh. 16 - Prob. 16.19ECh. 16 - Prob. 16.20ECh. 16 - Prob. 16.21ECh. 16 - Prob. 16.22ECh. 16 - Prob. 16.23ECh. 16 - Prob. 16.24ECh. 16 - Joint costs and decision making. Jack Bibby is a...Ch. 16 - Joint costs and byproducts. (W. Crum adapted)...Ch. 16 - Prob. 16.27PCh. 16 - Prob. 16.28PCh. 16 - Prob. 16.29PCh. 16 - Prob. 16.30PCh. 16 - Prob. 16.31PCh. 16 - Prob. 16.32PCh. 16 - Prob. 16.33PCh. 16 - Prob. 16.34PCh. 16 - Prob. 16.35PCh. 16 - Prob. 16.36PCh. 16 - Methods of joint-cost allocation, comprehensive....
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the scattergraph method, and why is it used? Why is a scattergraph a good first step in separating mixed costs into their fixed and variable components?arrow_forwardRefer to Exercise 7.25 and allocate the joint costs using the sales-value-at-split-off method.arrow_forwardDefine the following terms: joint production process, joint costs, joint products, split-off point, separable costs, and by-product.arrow_forward
- Why might the number of products in a joint cost situation differ from the number of outputs?arrow_forwardWhich of the following methods allocates joint costs based on the potential market value at the point where the products will be separated to be processed further? a.net realizable value method b.weighted average method c.market value at split-off method d.physical units methodarrow_forwardWhich of the following is the most commonly used method for assignment of joint costs? a. Relative sales value b. Split-off method c. Average production cost d. Relative percentage of direct costs basisarrow_forward
- Of the various methods used to allocate joint costs, which makes the most sense to you?arrow_forwardUsing a physical measurement method, what amount of joint processing cost is allocated to product B? Using sales value at split-off, what amount of joint processing cost is allocated to Product B?arrow_forwardMultiple costing is a technique of using two or more costing methods for ascertainment of cost by: a.the same industry for same product b.the same firm for same product c.the several firm for same product d.the several industries for same product Achievement of real and permanent reduction in the unit cost of product is called as: a.Cost control b.Cost reduction c.Cost analysis d.Cost estimationarrow_forward
- Using a physical measurement method, what amount is joint processing cost is allocated to product Wan? Using net realizable value at split-off, what amount of joint processing cost is allocated to product tri?arrow_forwardUsing sales value at split-off, what amount of joint processing cost is allocated to Product Alpha? Using a physical measurement method, what amount of joint processing cost is allocated to Product Gamma? Using net realizable value at split-off, what amount of joint processing cost is allocated to Product Delta?arrow_forwardThis topic is about cost allocation of joint products and by products.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY