Question :
41)
______ A)
$0.0150 B)
$0.0250 C)
$0.0259 D)
$0.01435 E)
$0.030
42)
What the approximate product : 1196107
41)
______ A)
$0.0150 B)
$0.0250 C)
$0.0259 D)
$0.01435 E)
$0.030
42)
What is the approximate production cost per unit for each pencil casing if the sales value at split off method is used? 42)
______ A)
$0.0255 B)
$0.0357 C)
$0.0335 D)
$0.0533 E)
$0.0250
43)
Two finished products, [A & B], are sold for $16 a unit and $24 a unit, respectively. Each product can also be sold at the split off point. Product A can be sold for $10 and Product B for $8. Joint costs for the two products totalled $8,000 for January for 600 units of A and 500 units of B.
What are the respective joint costs assigned to each unit of products A and B if the sales value at split off method is used? 43)
______ A)
$6.40 and $14.40 B)
$8.00 and $9.10 C)
$6.40 and $9.10 D)
$8.00 and $6.40 E)
$5.92 and $8.88
44)
Which method allocates joint costs on the basis of each product’s relative sales value at the split off point? 44)
______ A)
the constant gross-margin percentage NRV method B)
the split off method C)
the sales value at split off method D)
the physical measure method E)
the estimated net realizable value method
Use the information below to answer the following question(s).
Chem Manufacturing Company processes direct materials up to the split off point, where two products (X and Y) are obtained and sold. The following information was collected for the month of November.
Direct materials processed:
10,000 litres (10,000 litres yield 9,500 litres of good product and 500 litres of shrinkage)
Production:X
5,000 litres
Y 4,500 litres
Sales:X
4,750 at $150 per litre
Y 4,000 at $100 per litre
The cost of purchasing 10,000 litres of direct materials and processing it up to the split off point to yield a total of 9,500 litres of good products was $975,000.
The beginning inventories totalled 50 litres for X and 25 litres for Y. Ending inventory amounts reflected 300 litres of product X and 525 litres of product Y. October costs were per unit were the same as November.
45)
What are the respective physical volume proportions for products X and Y? 45)
______ A)
36.36 % and 63.64% B)
55.00% and 45.00% C)
47.37% and 53.63% D)
52.63% and 47.37% E)
54.00% and 46.00%
46)
What method is used when joint costs are allocated according to each item’s relative proportion of weight at the split off point? 46)
______ A)
direct proportion method B)
constant margin method C)
physical measure method D)
proportional value method E)
weighted sales value method
47)
What is the approximate portion of the joint costs that should be allocated to products X and Y, respectively, using a physical volume measure? 47)
______ A)
$530,000 and $470,000 B)
$529,285 and $445,715 C)
$487,500 and $487,500 D)
$513,142 and $461,858 E)
$461,858 and $513,142
48)
What is Product X’s approximate production cost per unit using the physical volume method? 48)
______ A)
$102.63 B)
$10.23 C)
$0.10 D)
$53.15 E)
$55.00
49)
An advantage of the sales value at split off method is 49)
______ A)
the cost allocation base is well understood. B)
the fact that only a few assumptions are required beyond the split off point. C)
the fact that it can be supported subjectively. D)
it always yields the same results as the gross margin percentage method. E)
the fact that there may not be a ready market at the split off point.
50)
What is product Y’s approximate joint production cost if the sales value at split off point method is used? 50)
______ A)
$600,000 B)
$458,250 C)
$365,625 D)
$609,375 E)
$419,250
