Joint Costs Notes.docx - Joint Costs Allocation Joint Cost...

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Wool $200,000 Separating Process $40,000 Fine $150,000 Dyeing $60,000 Dyed Fine $240,000 Superfine $60,000 Dyeing $10,000 Dyed Superfine $90,000 Coarse $120,000 Dyeing $50,000 Dyed Coarse $160,000 Joint Costs Split-off Point Joint Costs Allocation Joint Cost Foundation: The cost of a manufacturing process with two or more outputs is called a _joint cost__ . The outputs from this common input or common production process is are called joint products . The stage of processing that separates two or more products is called the split-off point . Although joint costs are allocated for many reasons, like performance evaluation and other measures requiring segment earnings, the primary purpose for allocating joint costs is for inventory valuation . What is the total joint cost for the period? What is the total profit for the period?

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