Question

Р pet-
Agita & co produces
porcoss a and
50.000 units
TO
a pouduct through
b Б during april
of finished
products wote produced and
exponses СОО АО
the following
incuorod
ub
particulars
Process
Process
material
10ooo
Tooo
25,000
Direct expenses
20.000
5000
3000
А A
Direct wages
ovahead expenses
amocented to 145000
which are
to be apportioned to
the procooss on basis of direct furgos
Racomatocial worth 7 40,000 HW
issued to, podcess A, prepare the
Process account
erages​

Answer 1

Answer:

unitfor all products.B) Estimated net realizable value method results in same gross margin percentage for allproducts.C) Present value allocation method is the least preferred method due to its complexcalculations.D) Sales value at split-off method uses the sales value of the entire production of theaccounting period to allocate costs.Answer:DDiff: 2Objective:3AACSB:Analytical thinking2) An example of allocating joint costs using physical measures is allocating joint costsbased on the ________.A) sales value at split-off pointB) volume of the products producedC) constant gross-margin percentageD) net realizable valueAnswer:BDiff: 2Objective:3AACSB:Analytical thinking3) Which of the following is a is a market-based approach to allocating joint costs?A) sales unitsB) units of productionC) physical measuresD) net realizable valueAnswer:DDiff: 2Objective:3AACSB:Analytical thinking4) How does the sales value at split-off method allocate joint costs? A) allocates joint costs to joint products on the basis of the relative total sales value at thesplit-off pointB) allocates joint costs to joint products on the basis of a comparable physical measure atthe split-off pointC) allocates joint costs to joint products on the basis of relative NRVD) allocates joint costs to joint products in a way that each product has an identical gross-margin percentageAnswer:ADiff: 2Objective:3AACSB:Analytical thinking