61) Another term for cost application is

A) cost pool.

B) cost driver.

C) cost objective.

D) cost attribution.

62) Each of the following is a step in the general approach to allocating costs to final products or services EXCEPT

A) select one or more cost drivers in each production department.

B) allocate production-related costs to the operating line.

C) apply the total costs allocated to the production department to the output of the department using cost drivers.

D) identify production costs as either direct or indirect.

63) One conventional way of allocating joint costs to products is the

A) relative sales value method.

B) direct method.

C) indirect method.

D) abc method.

64) Which of the following statements regarding by-products is FALSE?

A) A by-product is not individually identifiable until the split-off point.

B) A by-product is the same as a joint product.

C) By-products have relatively insignificant total sales value.

D) Only separable costs are allocated to by-products.

Upjohn Company manufactures four products from a joint process.  Joint costs for the year amounted to $350,000.  The following data are also available:

Product

Units Produced

Sales Value at

Split-off

W

44,000

$128,000

X

28,000

$104,000

Y

70,000

$142,000

Z

58,000

$126,000

65) Assuming the physical-units method of allocating joint costs, the amount of joint costs allocated to product W would be

A) $120,312.

B) $62,858.

C) $122,500.

D) $77,000.

66) Assuming the physical-units method of allocating joint costs, the amount of joint costs allocated to product X would be

A) $94,230.

B) $72,800.

C) $122,500.

D) $49,000.

67) Assuming the physical-units method of allocating joint costs, the amount of joint costs allocated to product Y would be

A) $172,536.

B) $99,400.

C) $122,500.

D) $24,648.

68) Assuming the physical-units method of allocating joint costs, the amount of joint costs allocated to product Z would be

A) $101,500.

B) $89,600.

C) $161,111.

D) $82,858.

69) Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product W would be

A) $89,600.

B) $120,312.

C) $77,000.

D) $50,400.

Bare Company manufactures four products from a joint process.  Joint costs for the year amounted to $140,000.  The following data are also available:

Product

Units Produced

Sales Value at

Split-off

B

4,400

$64,000

A

2,800

$52,000

R

7,000

$71,000

E

5,800

$63,000

70) Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product B would be

A) $35,840.00.

B) $48,124.80.

C) $30,800.00.

D



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