Joint Product - Joint Product Splitoff point : this is the...

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Unformatted text preview: Joint Product Splitoff point : this is the point at which the two products stop sharing the same process and become different, identifiable products. Joint costs : those costs incurred prior to the splitoff point Separable costs : incurred after the splitoff point. Physical-unit Method Quantity of Product A X Total Joint Costs = Amount allocated to the Joint Product A Total Quantity of all Joint Products = Sales Value at Splitoff Method Joint costs are allocated based on the actual number of units of each of the products produced Sales Value of Product A X Total Joint Costs = Amount allocated to the Joint Product A Total Sales Value of all Joint Products = Estimated Net Realizable Value (NRV) Method Used for the product or products that will be processed further, consist of 2 steps. Step I Sales price of Product A produced that will be sold in the future - Separable costs that are incurred after the splitoff point = Estimated Net Realizable Value-----------------------------------------------------------------------------------------------------------------------------------------------------------...
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This note was uploaded on 08/16/2011 for the course MGMT 301 taught by Professor Hisham during the Spring '11 term at McMaster University.

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Joint Product - Joint Product Splitoff point : this is the...

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