A Joint Input Costing $500 Results in Four Distinct Products

question 36

Multiple Choice

A joint input costing $500 results in four distinct products at the point of split-off. Products J, K and L are main products, and product M is a by-product. Relevant data follows: Sales Value Separable Sales Value After
Product at Split-Off Cost Further Processing
J (main) $200 $100 $400
K (main) 300 200 600
L (main) 100 -- --
M (by-product) 20 10 40
If the revenue from product M is recognized at the time of sale, what amount will be recorded as the cost of product M inventory at the time of split-off?

• A)$0
• B)$10
• C)$20
• D)$30

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Definitions:

Job Description

A list of the tasks, duties, and responsibilities (TDRs) that a particular job entails.

Controlled

This term broadly refers to something that is governed or regulated by rules, standards, or mechanisms to ensure proper functioning or compliance.

Content Validity

Relates to the extent to which a test measures all aspects of the concept it intends to measure.

Construction-error Recognition

The process of identifying mistakes made during the building phase of a project, allowing for corrective action to be taken to prevent similar issues in the future.