Nelson SA Obtains Two Products and a By-Product from Its Production

question 38

Essay

Nelson SA. obtains two products and a by-product from its production process. By-product revenues are treated as other income and a noncost approach is used to assign costs to them. During the period, 1,200 units were processed at a cost of £12,000 for materials and conversion costs, resulting in the following: $\begin{array}{ccccc}&\text { Sales Value }& \text { Costs after } & \text { Final }\\\text { Product }& \text { Units } & \text { at Separation } & \text { Separation } & \text {Value}\\\mathrm{X} & 200 & £ 4,000 & £ 2,000 & £ 10,000 \\\mathrm{Y} & 400 & 5,000 & 6,000 & 12,000 \\\text { By-product } & 150 & 500 & 500 & 1,500\end{array}$
a.Account for all costs using a physical basis for allocation.
b.Account for all costs using net realizable value as the basis for allocation.
c.Account for all costs using final sales value as the basis for allocation.
d.How much joint costs should be allocated to the by-product?

Provide examples of classical conditioning in everyday life.

Utilize classical conditioning techniques to address phobias.

Understand the concept of habituation through real-life examples.

Identify and apply various behavior modification strategies to academic and personal tasks.

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Definitions:

Rearing

The process of caring for and bringing up children or young animals, focusing on their health, education, and emotional development.

Theories

Systematically organized principles that have been formulated to explain and predict phenomena within a certain domain of inquiry.

Study of Personality

The field of psychology that explores individual differences in characteristic patterns of thinking, feeling, and behaving.

Understand

The ability to comprehend or grasp the meaning, significance, or nature of something.