How does management determine how to classify each type of output from a joint process? Is this decided before or after production?

Expert Solution

Joint processing output is classified based on the relative sales value for each type of output. Joint products are those outputs that have the greatest sales value. By-products are those outputs that have some sales value, but not a sufficient amount to justify undertaking the joint process simply to obtain those outputs. Scrap is output that has no or very little sales value. Usually, the output classification is determined before production. Management decides whether a joint process output is a joint product, a or scrap based on the judgment of the relative sales value of for each type of output. However, in unusual cases, the actual output of the collaborative process may not go as planned. In such cases, management some may classify the output differently than what was originally intended.

Joint processing output is classified based on the relative sales value for each type of output. Joint products are those outputs that have the greatest sales value.

Samantha Mae Cerdeño answered 2 years ago

By what criteria would management determine whether to proceed with processing at each decision point in a joint production process?

6. How does management determine the valuation of the allowance for doubtful accounts? Does this process...

6. How does management determine the valuation of the allowance for doubtful accounts? Does this process differ from account balances based on recording transactions, such as cash transactions? If so, how does it differ and how do you treat in differently in regard to audit evidence). 150 words minimum. - 7. What information should a company use to make the estimate of the allowance for doubtful accounts? 100 words minimum - 8. How important are changes in economic conditions to...

JOINT PRODUCTS/SPLIT-OFF Blanchard Manufacturing Company manufactures four products from a joint production process. Each product may...

JOINT PRODUCTS/SPLIT-OFF Blanchard Manufacturing Company manufactures four products from a joint production process. Each product may be sold at split-off or processed further. Sales Value Sales Values and Costs if Product Units Produced at Split Off Processed Further______ Sales Value Added Costs 1 50,000 $215,000 $235,000 $15,000 2 25,000 $60,000 $98,000 $22,000 3 19,500 $180,000 $207,000 $30,000 4 8,700 $22,000 $39,000 $8,000 Which product(s) should be processed...

Bowen Company makes two products from a joint production process. Each product may be sold at...

Bowen Company makes two products from a joint production process. Each product may be sold at the split-off point or processed further. Information concerning these products for last year appears below: Product X Product Y Allocated joint costs .................. $25,000 $17,000 Sales value after further processing ... $41,000 $47,000 Sales value at the split-off point ..... $29,000 $23,000 Additional processing costs ............ $19,000 $15,000 Assume Bowen Company makes all the correct sell or process further decisions. Calculate the net income...

Spencer Manufacturing Ltd. produces products P, Q, and R from a joint production process. Each product...

Spencer Manufacturing Ltd. produces products P, Q, and R from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $81,000 per year are allocated to the products based on the relative number of units produced. Data for Spencer Manufacturing Ltd.’s operations for the current year are as follows: Units Produced Allocated Joint Production Cost Sales Value at Split-off Product P 4,000 $ 38,000 $ 48,000 Product Q 7,000...

A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run...

A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Product Gallons Further Processing Cost per Gallon Eventual Market Price per Gallon L-Ten 3,200 $0.40 $2.50 Triol 3,700 1.10 5.00 Pioze 2,300 1.60 6.30 Required: 1. Allocate the joint cost to L-Ten, Triol,...

Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production...

Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls. 1. What is the amount of joint costs allocated to Dulls using the physical...

please answer What is knowledge management and how does it occur in international joint ventures?

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The...

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: Direct materials $75,000 Direct labor 35,000 Overhead 25,000 At the split-off point, a batch yields 1,700 barlon, 2,400 selene, 2,300 plicene, and 3,600 corsol. All products are sold at the split-off point: barlon sells for $18 per unit, selene sells for $22 per unit, plicene sells for $25 per unit, and corsol sells for $37 per...

4. Lake Corporation manufactures two products, AA and BB, from a joint process. A production run...

4. Lake Corporation manufactures two products, AA and BB, from a joint process. A production run costs $20,000 and results in 500 units of AA and 2,000 units of BB. Both products must be processed past the split-off point, incurring separable costs of $5 per unit for AA and $10 per unit for BB. The market price is $25 for AA and $20 for BB. I have the answers I just need the work shown in detail with step-by-step instructions....

Question