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Cost Acctg. II Joint Product QUIZ Answer Key PDF
Cost Acctg. II Joint Product QUIZ Answer Key PDF
Canlubang Campus
Cost Accounting II
Quiz
Name: _______________________________ Date:_____________
General Direction: Write the letter of your answer before the number. Strictly no erasure is allowed.
**Rocky Mountain Company produces two products (X and Y) from a joint process. Each product
may be sold at the split-off point or processed further. Additional processing requires no special
facilities, and production costs of further processing are entirely variable and traceable to the products
involved. Joint manufacturing costs for the year were P60,000. Sales values and costs were as
follows:
If Processed Further
Units Sales Value Sales Separable
Product Made at Split-off Value Costs
X 9,000 P40,000 P78,000 P10,500
Y 6,000 80,000 90,000 7,500
1. If the joint production costs are allocated based on the physical-units method, the amount of joint
cost assigned to product X would be:
a. P20,000. c. P30,000.
b. P24,000. d. P36,000.
a
2. If the joint production costs are allocated based on the relative-sales-value method, the amount of
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joint cost assigned to product X would be:
a. P20,000. c. P33,000.
b. P27,000. d. P40,000.
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3. If the joint production costs are allocated based on the net-realizable-value method, the amount of
joint cost assigned to product Y would be:
a. P20,000. c. P33,000.
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b. P27,000. d. P40,000.
4. Alphabet Company manufactures Products A and B from a joint process that also yields a
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by-product, X. Alphabet accounts for the revenues from its by-product sales as a deduction from the
cost of goods sold of its main products. Additional information is as follows:
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A B X Total
Units produced........................................ 15,000 9,000 6,000 30,000
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Assuming that joint product costs are allocated using the market value at the split-off approach, the
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b. P79,200
c. P88,000
d. P86,591
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5. Idaho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are
allocated on the basis of relative market value at split-off. It costs P4,560 to process 500 gallons of
Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is P10
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per gallon for Product A and P14 for Product B. Product B requires an additional process beyond
split-off at a cost of P2 per gallon before it can be sold. What is Idaho's cost to produce 1,000 gallons
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of Product B?
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a. P5,040
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b. P4,360
c. P4,860
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d. P5,360
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6. Cayan Company manufactures three main products, F, G, and W, from a joint process. Joint costs
are allocated on the basis of relative market value at split-off. Additional information for June
production activity follows:
F G W Total
Units produced ................................................. 50,000 40,000 10,000 100,000
Joint costs ................................................. ? ? ? P450,000
Market value at split-off.................................... P 420,000 P 270,000 P60,000 P750,000
Additional costs if
processed further................................... P 88,000 P 30,000 P12,000 P130,000
Market value if
processed further................................... P 538,000 P 320,000 P87,000 P945,000
Assuming that the 10,000 units of W were processed further and sold for P87,000, what was Cayan's
gross profit on this sale?
a. P75,000
b. P51,000
c. P21,000
d. P39,000
7. A company processes raw material into products F1, F2, and F3. Each ton of raw material
produces five units of F1, two units of F2, and three units of F3. Joint processing costs to the
split-off point are P15 per ton. Further processing results in the following per unit figures:
F1 F2 F3
Additional processing costs per unit........................ P28 P30 P25
Selling price per unit................................................ 30 35 35
a
If joint costs are allocated by the net realizable value of finished product, what proportion of joint
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costs should be allocated to F1?
a. 20%
b. 30%
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c.33 1/3%
d. 50%
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8. The Hovart Corporation manufactures two products out of a joint process—Compod and Ultrasene.
The joint (common) costs incurred are P250,000 for a standard production run that generates
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120,000 gallons of Compod and 80,000 gallons of Ultrasene. Compod sells for P2.00 per gallon,
while Ultrasene sells for P3.25 per gallon.
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If there are no additional processing costs incurred after the split-off point, the amount of joint cost of
each production run allocated to Compod by the quantitative unit method is:
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a. P100,000
b. P120,000
c. P130,000
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d. P150,000
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9. Lite Co. manufactures products X and Y from a joint process that also yields a by-product, Z.
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Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows:
Products
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X Y Z Total
Units produced 20,000 20,000 10,000 50,000
Joint costs ? ? ? P262,000
Sales value at
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Joint costs were allocated using the sales value at split-off approach. The joint costs allocated to
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product X were
a. P75,000.
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b. P100,800.
c. P150,000.
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d. P168,000.
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***Ratcliff Company produces two products from a joint process: X and Z. Joint processing costs for
this production cycle are P8,000.
Disposal
Sales price cost per Further Final sale
per yard at yard at processing price per
Yards split-off split-off per yard yard
X 1,500 P6.00 P3.50 P1.00 P 7.50
Z 2,200 9.00 5.00 3.00 11.25
If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the
buyer.
10. Using net realizable value at split-off, what amount of joint processing cost is allocated to Z ?
a. P5,500
b. P4,000
c. P2,390
d. P5,610
11. Using approximated net realizable value at split-off, what amount of joint processing cost is
allocated to X?
a. P3,090
b. P5,204
c. P4,000
d. P2,390
a
b. only Z
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c. both X and Z
d. neither X or Z
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***BBB Manufacturing Company makes three products: A and B are considered main products and
C a by-product.
Product A 320,000
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Product B 190,000
Product C 6,900
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Using the by-product revenue as a cost reduction and net realizable value method of assigning joint
costs, compute unit costs, if C is a by-product of the process
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15. if C is a by-product of B. compute unit cost of Product A & Product B - - - 2.36 & 1.27
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***END***
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“The moment you take responsibility for everything in your life is the
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