Cost Allocation Techniques Paper 13

1

Which line of the following schedule is incorrect?






2

The PeeDee Gravel Company produces 4 grades of gravel: Decorative, Basic, Foundation, and Pea. From 10 tons of raw materials, the company produces 5 tons of Decorative, 3 tons of Basic, 1 ton of Foundation, and 1 ton of Pea gravel grades. The cost of raw material is $12.00 per ton. On a physical basis, how much of the cost of 90 tons of raw materials should be allocated to the Pea gravel grade?






3

The selling price of a joint product is $12,000. The total selling price of all of the joint products is $60,000. Total cost for all the joint products is $36,000. The gross profit rate on the joint product, based on an allocation of joint costs on a value basis, is:






4

Which of the following statements best define split off point in joint costing?






5

Which of the following statements best define joint products?






6

The products of a joint production process that have low total sales value compared with the total sales value of the main product are called __________.






7

__________ is the differentiating factor while classifying a product as a main product or byproduct.






8

In joint costing, which of the following changes may lead to a change in product classification?






9

Products with a relatively low sales value are known as _________.






10

Which of the following statements is true of main products and byproducts?






Result

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