Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Question
Chapter 16, Problem 16.16MCQ
To determine
By Products:
By products are the products which are produced unintentionally along with the main product. By products have lower value than the primary product manufactured in the same process.
To identify: The correct option.
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Students have asked these similar questions
Manufacturing companies are not required to allocate joint-process costs in the valuation of inventories and cost of goods sold for
O a. financial reporting.
O b. tax reporting.
c. managerial reporting.
O d. All of the above.
Which of the following applies conservatism to the financial statements of a full cost company?
Group of answer choices
A. Use of the entire country as the cost center
B. Full cost ceiling test
C. Capitalization of exploratory dry holes
D. Exclusion of costs from the amortization pool
ces
Elsa Products processes Chem-Z Into two products: Chem-A and Chem-B. Chem-Z costs $41,200 per batch. The joint process
produces 5,000 units of Chem-A with a market value of $174,200, and 15,000 units of Chem-B with a market value of $39,350. The
conversion cost of the joint process is $16,000 per batch. Elsa Products allocates Joint costs using the physical quantities method. The
company never holds any Inventory.
Required:
a. What cost (total, not unit) and profit will be reported for each product using the current method for allocating Joint costs?
b. If the costs of the joint process are allocated on the basis of the net realizable value of the products, what cost (total, not unit) and
profit will be reported for each product?
c. How much will profit at Elsa Products Increase or decrease if the company switches to the net realizable value method for allocating
Joint process costs?
Complete this question by entering your answers in the tabs below.
Required A Required B Required C…
Chapter 16 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
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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Similar questions
- Of the following statements, which is true? a. None of the answers are correct b. The cost of harvesting a pineapple plantation are additional processing costs c. Real estate taxes are an example of joint costs d. Joint cost allocations are helpful in assessing a product's profitability e. Common costs are incurred only in disassemblyarrow_forwardHAHA manfactures products R, S and T from a joint process. Below are additional information: Question: How much is the joint cost allocated to S using sales value split off method.arrow_forwardRevenue from sales of the by-product can be listed in the income statement as: a. additional cost to the product b. a deduction from the total manufacturing cost of the by-product c. a deduction from the cost of goods sold of the by-product d. additional sales revenuearrow_forward
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- Companies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it true or false?arrow_forwardWhich of the following is NOT a period cost? Select one: O a. manufacturing costs. Ob general and administrative costs. Oc marketing costs. Od. research and development costs. Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? Select one: a. What substitute products exist in the marketplace? Ob. Who are our most important customers? Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? Od. Will adequate cash be available to implement the strategy?arrow_forwardFor each situation, list the assumption, principle, or constraint that has been violated, if any. List only one answer for each situation. a. East Lake Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain. choose one of the assumption, principle or constraint Going concern assumptionPeriodicity assumptionNo violationHistorical cost principleRevenue recognition principleEconomic entity assumption b. Hilo Company is in its fifth year of operation and has yet to issue financial statements. (Do not use the full disclosure principle.) choose one of the assumption, principle or constraint Historical cost principleGoing concern assumptionRevenue recognition principleNo violationPeriodicity assumptionEconomic entity assumption c. Gomez, Inc. is…arrow_forward
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