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Z, production, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During June, the joint costs of processing were $100,000. Production and sales value information for the month is as follows:

Product	Units Produced	Sales Price at Splitoff Point
Turpentine	5,000 liters	$10
Paint thinner	5,000 liters	$20
Spot remover	10,000 liters	$15

.

Product	Sales Value at Splitoff	Percentage	Joint Costs $100,000	Allocated
Turpentine				?
Paint thinner
Spot remover
Totals				$100,000

Determine the amount of joint cost allocated to each product if the Sales Value at Splitoff Point method is used (round up)

	A.	Turpentine $25,000; Paint thinner $25,000; Spot remover $50,000
	B.	None of them
	C.	Turpentine $15,000; Paint thinner $30,000; Spot remover $55,000
	D.	Turpentine $16,666; Paint thinner $33,334; Spot remover $50,000

Company processes apples into jam, juice, and canned tomatos. During the summer of 2018, the joint costs of processing the tomatoes were $10,000. There was no beginning or ending inventories for the summer. Production and sales value information is as follows:

Product	Cases	Sales Price at Splitoff Point	Separable Costs	Final Selling Price
Jam	100	$6 per case	$3.00 per case	$28 per case
Juice	150	8 per case	5.00 per case	25 per case
Canned	200	5 per case	2.00 per case	10 per case

Product	Final Sales Value	Separable Costs	Net Realizable Value	Percentage
Jam	?
Juice
Canned Tomato
Totals

Determine Final Sales Value to each product ?

	A.	None of them
	B.	Jam $2,800; Juice $3,750;Canned tomato $2.000
	C.	Jam $600; Juice $1,200; Canned tomato $1,000
	D.	Jam $2,500; Juice $3,900; $1,500

Company processes apples into jam, juice, and canned tomatos. During the summer of 2018, the joint costs of processing the tomatoes were $10,000. There was no beginning or ending inventories for the summer. Production and sales value information is as follows:

Product	Cases	Sales Price at Splitoff Point	Separable Costs	Final Selling Price
Jam	100	$6 per case	$3.00 per case	$28 per case
Juice	150	8 per case	5.00 per case	25 per case
Canned	200	5 per case	2.00 per case	10 per case

Product	Final Sales Value	Separable Costs	Net Realizable Value	Percentage	Joint Costs	Allocated
Jam
Juice
Canned Tomato
Totals

Required:

Determine the percentage allocated to each product and amount of Joint Costs allocated to each product if the estimated NRV (net realizable value) method is used.

	A.	Jam 35,21% and $3,521; Juice 42,25% and $4,225; Canned tomato 22,54% and $2,254
	B.	Jam 35% and $3,000; Juice 50% and $5,000; Canned tomato 15% and $2,000
	C.	Jam 30% and $3,000; Juice 50% and $5,000; Canned tomato 20% and $2,000
	D.	Jam 25,5% and $2,550; Juice 54,5% and $5,450; Canned tomato 20% and $2,000

What methods can be used to allocate joint costs to main products?

	A.	Physical measure method
	B.	NRV, Constant gross-margin percentage NRV
	C.	All of them
	D.	Sales value at splitoff method

The Corporation "Victor" operates one central plant that has one support department and two production divisions: Division 1 and Division 2. The following data apply to the coming budget year:

Budgeted costs of the support department

Fixed operating costs $260,000

Variable operating costs $100 per hour

Practical capacity 2,000 hours

Budgeted long-run usage:

Division 1 800 hours per year

Division 2 500 hours per year

Assume thatpractical capacity is used to calculate the allocation rates. Further assume that actual usage of the Division 1 was 900 hours and the Division 2 was 400 hours.

Required:

If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2? Assume actual usage is used to allocate operating costs.

	A.	$207,000 and 92,000
	B.	None of them
	C.	$ 161,000 and $92,000
	D.	$16,100 and 9,200

the Corporation "Victor" operates one central plant that has one support department and two production divisions: Division 1 and Division 2. The following data apply to the coming budget year:

Budgeted costs of the support department

Fixed operating costs $260,000

Variable operating costs $100 per hour

Practical capacity 2,000 hours

Budgeted long-run usage:

Division 1 800 hours per year

Division 2 500 hours per year

Assume thatpractical capacity is used to calculate the allocation rates. Further assume that actual usage of the Division 1 was 900 hours and the Division 2 was 400 hours.

Required:

If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2?

	A.	None of them
	B.	$90,000 and $105,000
	C.	$194,000 and $105,000
	D.	$174,000 and $105,000

The Corporation "Victor" operates one central plant that has one support department and two production divisions: Division 1 and Division 2. The following data apply to the coming budget year:

Budgeted costs of the support department

Fixed operating costs $260,000

Variable operating costs $100 per hour

Practical capacity 2,000 hours

Budgeted long-run usage:

Division 1 800 hours per year

Division 2 500 hours per year

Assume that annualbudgeted long-run usage (Demand) is used to calculate the allocation rates for the Division 1 and Division 2 of Corporation "Victor".

Further assume that actual usage of the Division 1 was 900 hours and the Division 2 was 400 hours.

Required:

If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2?

		$270,000 and $120,000
		$210,000 and $120,000
		None of them
		$19,131 and $10,932

The Corporation "Victor" operates one central plant that has one support department and two production divisions: Division 1 and Division 2. The following data apply to the coming budget year:

Budgeted costs of the support department

Fixed operating costs $260,000

Variable operating costs $100 per hour

Practical capacity 2,000 hours

Budgeted long-run usage:

Division 1 800 hours per year

Division 2 500 hours per year

Assume that actual usage of the Division 1 was 900 hours and the Division 2 was 400 hours.Assume that annualbudgeted long-run usage (Demand) is used to calculate the allocation rates for the Division 1 and Division 2 of Corporation "Victor".

Required:

If a dual-rate cost-allocation method is used, what amount of cost will be allocated to the Division 1? To the Division 2?

	A.	$120,864 and $101,799
	B.	$230,000 and $140,000
	C.	$250,000 and $140,000

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