COST ACCOUNTING PLUS NEW MYACCOUNTING L
16th Edition
ISBN: 9780134476353
Author: Horngren
Publisher: PEARSON
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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
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.
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Give two examples of industries in which joint costs are found.For each example , what are the individual products are at the splitoff point?
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Chapter 16 Solutions
COST ACCOUNTING PLUS NEW MYACCOUNTING L
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. 16.16MCQCh. 16 - Joint costs of 8,000 are incurred to process X and...Ch. 16 - Houston Corporation has two products, Astros and...Ch. 16 - Dallas Company produces joint products, TomL and...Ch. 16 - Earls Hurricane Lamp Oil Company produces both A-1...Ch. 16 - Joint-cost allocation, insurance settlement....Ch. 16 - Joint products and byproducts (continuation of...Ch. 16 - Net realizable value method. Sweeney Company is...Ch. 16 - Alternative joint-cost-allocation methods,...Ch. 16 - Alternative methods of joint-cost allocation,...Ch. 16 - Prob. 16.26ECh. 16 - Joint-cost allocation, sales value, physical...Ch. 16 - Joint-cost allocation: Sell immediately or process...Ch. 16 - Accounting for a main product and a byproduct....Ch. 16 - Joint costs and decision making. Jack Bibby is a...Ch. 16 - Joint costs and byproducts. (W. Crum adapted)...Ch. 16 - Methods of joint-cost allocation, ending...Ch. 16 - Alternative methods of joint-cost allocation,...Ch. 16 - Comparison of alternative joint-cost-allocation...Ch. 16 - Joint-cost allocation, process further or sell....Ch. 16 - Joint-cost allocation. SW Flour Company buys 1...Ch. 16 - Further processing decision (continuation of...Ch. 16 - Joint-cost allocation with a byproduct. The...Ch. 16 - Byproduct-costing journal entries (continuation of...Ch. 16 - Joint-cost allocation, process further or sell....Ch. 16 - Prob. 16.41PCh. 16 - Prob. 16.42PCh. 16 - Methods of joint-cost allocation, comprehensive....
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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
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