Joint products and by-products

Multiple choice questions (MCQs) quiz

1. If two products are obtained by refining one ore, the refining process would be considered as:

2. The joint production cost should be allocated:

3. The joint product costing method that produces the same gross profit percentage for all products is known as:

4. When a company produces two different products through a common production process, the factor that determines whether the two products are joint products or one main product and one by-product is the:

5. The basic objective of allocating the joint cost of a processing center to various products is to:

6. A by-product:

7. Five Star Company manufactures two products that can be sold at split-off point or processed further and sold as superior quality items. The decision to sell the products at split-off point or process them further should be based on the:

8. The hypothetical market value is equal to:

9. The Ultimate market value of a product X is $20 per unit. The processing cost after split-off point is $5 per unit and marketing and administrative expenses are $1 per unit. If 10,000 units are produced during a period, the hypothetical market value of product X would be:

10. A separable cost is the cost incurred:

11. The point at which two or more products emerge in their separately identifiable form is known as:

12. A cost incurred to produce two or more products in a common production process is termed as:

13. A method that uses measurement units such as tons, gallons, kilograms, pounds and feet to apportion joint cost is known as:

14. The quantitative unit method of joint cost allocation is also known as:

15. Another name used for market value method of joint cost allocation is:

16. A method that considers all the joint products as the same unit is known as:

17. A method that assigns predetermined weight factors to each unit of various joint products for the purpose of allocating joint cost is known as:

18. Merhaba Company produces 5,000 units of product X and 4,000 units of product Y in a joint production process. If a weight factor of 2 is assigned to each unit of product X and a weight factor of 4 is assigned to each unit of product Y, the weighted number of units would be:

19. The replacement cost method for by-products is used by companies that:

20. Which of the following statements about the recognition of gross revenue method for by-products is correct?

21. Companies often recover one or more secondary products while manufacturing their primary products. In cost and management accounting, these secondary products are termed as:

22. Under generally accepted accounting principles (GAAP), which of the following joint cost allocation methods is not acceptable?

23. Marshal Inc., manufactures two products, A and B, in a joint manufacturing process. Product A is sold for $10 and product B is sold for $5. In January, 10,000 units of product A and 15,000 units of product B were manufactured. The total joint cost in January was $75,000. The additional processing cost after split-off was $15,000 for product A and $10,000 for product B.

Based on the above data, the joint cost allocation to product A and product B under net realizable value (NRV) method would be:

24. Marshal Inc., manufactures two products, A and B, in a joint manufacturing process. Product A is sold for $10 and product B is sold for $5. In January, 10,000 units of product A and 15,000 units of product B were manufactured. The total joint cost in January was $75,000. The additional processing cost after split-off was $15,000 for product A and $10,000 for product B.

Based on the above data, the joint cost allocation to product A and product B under physical units method would be:

25. The quantitative unit cost method of joint cost allocation is also known as: