COST ACCOUNTING
COST ACCOUNTING
16th Edition
ISBN: 9781323694008
Author: Horngren
Publisher: PEARSON C
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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
Check Mark
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

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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