Cost Allocation: Joint Products and...
Multiple Choice

1 .       The costs of production that yield multiple products simultaneously are known as [Hint]

 
 
 
 


2 .       A product produced in a joint process that has a low sales value is known as a(n) [Hint]

 
 
 
 


3 .       A method of allocating joint costs that uses volume would be the [Hint]

 
 
 
 


4 .       Oily Slime buys Emils, which is produced until two products can be separated, Ems and Ils. The cost of processing Emils to the split-off point is $50,000. When the products can be identified, the following information is available:

Production Sales value at splitoff
Ems 20,000 units $5 per unit
ILs 25,000 units $6 per unit

If the firm uses the Sales value at splitoff method, how much of the joint processing cost should be allocated to Ems? [Hint]

 
 
 
 


5 .       Oily Slime buys Emils, which is produced until two products can be separated, Ems and Ils. The cost of processing Emils to the split-off point is $50,000. When the products can be identified, the following information is available:

Production Sales value at splitoff
Ems 20,000 units $5 per unit
ILs 25,000 units $6 per unit

If the firm uses the physical units method, how much of the joint processing cost should be allocated to Ils? [Hint]

 
 
 
 


6 .       Oily Slime buys Emils, which is produced until two products can be separated, Ems and Ils. The cost of processing Emils to the split-off point is $50,000. When the products can be identified, the following information is available:

Production Sales value at splitoff
Ems 20,000 units $5 per unit
ILs 25,000 units $6 per unit

If the firm uses the physical units method, what is the joint production cost per unit of Ils? [Hint]

 
 
 
 


7 .       Oily Slime buys Emils, which is produced until two products can be separated, Ems and Ils. The cost of processing Emils to the split-off point is $50,000. When the products can be identified, the following information is available:

Production Sales value at splitoff
Ems 20,000 units $5 per unit
ILs 25,000 units $6 per unit

If the firm uses the Sales value at splitoff method, how much is the joint processing cost per unit of Ems? [Hint]

 
 
 
 


8 .       Oily Slime buys Emils, which is produced until two products can be separated, Ems and Ils. The cost of processing Emils to the split-off point is $50,000. When the products can be identified, the following information is available:

Production Sales value at splitoff
Ems 20,000 units $5 per unit
ILs 25,000 units $6 per unit


Both Ems and Ils can be processed further. Ems can be processed into 40,000 units of Sme with at an additional cost of $30,000. It can then be sold for $7.50 per unit. Ils can be processed further into 25,000 units of Sli at an additional cost of $50,000. Sli can be sold for $10.00 per unit.

If the firm uses the net realizable value method, the joint processing costs allocated to Sli will beadd [Hint]

 
 
 
 


9 .       If the information is available such that any allocation method is available, the preferred method for allocation is the [Hint]

 
 
 
 


10 .       The sales method for byproducts recognizes the product in the books when the product is [Hint]

 
 
 
 






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