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17 Jun 2018
12-13 Define the following terms: joint products, joint costs, and split-off point.
12-13 Define the following terms: joint products, joint costs, and split-off point.
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Beverley SmithLv2
19 Jun 2018
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Bonanza Co. manufactures products X and Y from a joint processthat also yields a by-product, Z. Revenue from sales of Z istreated as a reduction of joint costs. Additional information is asfollows:
PRODUCTS | |||||||||||||
X | Y | Z | TOTAL | ||||||||||
Units produced | 25,000 | 25,000 | 12,500 | 62,500 | |||||||||
Joint costs | $ | ? | $ | ? | $ | ? | $ | 287,000 | |||||
Sales value at split-off | $ | 375,000 | $ | 187,500 | $ | 12,500 | $ | 575,000 | |||||
Joint costs were allocated using the net realizable value method atthe split-off point. The joint costs allocated to product Xwere
$93,750.
$115,800.
$187,500.
$183,000.