15.1   Distinguish among different types of saleable products, scrap and toxic waste.   1) Joint costs are incurred beyond the split off point and are assignable to individual products.   2) A byproduct has a minimal sales value.   3) Scrap frequently has a zero sales value.   4) There are no logical reasons for allocating joint costs.   5) Separable costs are assignable after the splitoff point.   6) Separable costs include manufacturing costs only.   7) The costs of production that yield multiple products simultaneously are known as joint costs.   8) The juncture in a joint production […]

  15.2   Analyze the physical measure and sales value at splitoff methods to allocate joint costs.   1) The cause-and-effect criterion is not present when joint costing is used.   2) It is easier to cost inventory if the joint products are sold before the split off point without further processing. 3) The sales value at split off method allocates joint costs according to each product's value, at the split off point, of the total production in the accounting period of each product.   4) The sales value at split off method can be used to value inventory as well […]

  21) Calculate the allocation of packaged price Game A in Package 3, using selling prices as the base. A) $34.20 B) $30.00 C) $25.00 D) $22.80 E) $19.00 22) Calculate the revenue allocation for Game A in Package 1, using physical units as the base. A) $12.57 B) $13.97 C) $20.84 D) $22.00 E) $23.16   23) Calculate the allocation of packaged price for Game A in Package 1, using unit costs as the base. A) $12.57 B) $13.97 C) $20.84 D) $22.00 E) $23.16   24) To give more weight to the product that most likely drives the […]

  11) Which of the following statements is true in regard to the cause-and-effect relationship between allocated joint costs and individual products? A) A high individual product value results in a high level of joint costs. B) A low individual product value results in a low level of joint costs. C) A high individual product value results in a low level of joint costs. D) The cause-and-effect relationship depends on the relative costs to be incurred after split off. E) There is no cause-and-effect relationship. Use the information below to answer the following question(s).   Raynor Manufacturing purchases trees from […]

  Use the information below to answer the following question(s).   Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Strong and Mild, and sold to retail outlets. The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea. The following information is provided for the month of May:     Budgeted Strong Mild Actual Strong Mild Price per kg $2.00 $3.00 $2.50 $2.50 Variable cost /kg 1.00 1.50 1.00 […]