RKH Corporation Produces Three Joint Products

question 23

Multiple Choice

RKH Corporation produces three joint products. During a recent accounting period, joint costs totalled $365 and RKH had no beginning inventories. Additional data appear below: M1 M2 M3
Volume (kilograms) 150 50 300
Sales value at the split-off point $375 $155 $600
Sales value after further processing $450 $200 $900
Separable costs $50 $35 $100
Which of the following methods will result in the greatest total joint cost allocation among the three products?
I. Net realizable value
II. Sales value at split-off point
III. Physical output
IV. Constant gross margin NRV

• A)I and II only
• B)II and III only
• C)I and IV only
• D)All methods will result in the same total joint cost allocated

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Definitions:

Dissociative Amnesia

A psychological condition characterized by memory loss that is too significant to be explained by ordinary forgetfulness.

Dissociative Identity Disorder

A psychological condition where a person experiences two or more distinct identities or personality states, each with its own pattern of perceiving and interacting with the world.

Dissociative Fugue

An infrequent psychiatric syndrome characterized by short-term memory loss relating to self-identity, which includes forgetting personal history, personality, and individual specific attributes.

Depersonalization-derealization Disorder

A disorder marked by periods of feeling detached from one’s body or thoughts (depersonalization) and feeling that the world is not real (derealization).