32. If a company using the adjusted sales value method to assign joint costs pro

Question

32. If a company using the adjusted sales value method to assign joint costs produces two products, A and B, from a joint process, and B requires additional processing after the split-off in order to be salable, how is the joint cost allocated to B determined? a. The costs of the additional processing are ignored in allocating joint costs. b. The costs of the additional processing are subtracted from the joint costs allocated to B. c. The relative sales value used to allocate the joint cost are determined after the costs of further processing are subtracted from the ultimate sales value of B. d. None of these are correct.

Explanation / Answer

Answer ) option C

The relative sales value used to allocate the joint cost are determined after the costs of further processing are subtracted from the ultimate sales value of B.

Answer ) option C

The relative sales value used to allocate the joint cost are determined after the costs of further processing are subtracted from the ultimate sales value of B.

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