3310solmod22

3310solmod22 - Module 22 Answers 10-5. Because net...

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Module 22 Answers 10-5. Because net realizable values of the output provide a measure of the economic benefit received from each output from the production process, this method is usually preferred when it can be implemented. Further, the physical quantities may be difficult to compare (e.g., weights versus volumes). 10-7. For joint products, costs of the inputs up to the split-off point are allocated to each of the products. Costs prior to split-off are not allocated to by-products in the same way as to the main (joint) products. Either joint costs (costs incurred prior to split-off) equal to the sales value of the by-product is allocated to the by-product, reducing the costs allocated to the main products (Method 1 in the text) or no joint cost are allocated to the by- product and it is credited with its sales value (Method 2). 10-30. (15 min.) Net Realizable Value Method. Total joint costs are $675,000 (based on the $225,000 materials plus $450,000 conversion). These costs are allocated as follows:
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3310solmod22 - Module 22 Answers 10-5. Because net...

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