a A product produced at the same time as other products which has a relatively low volume compared with the other products b A product produced at the same time as other products which r
Trang 1EXAM CHAPTER 13: PROCESS
COSTING JOINT PRODUCTS
Duration: 90 minutes
Number of Questions: 35 Multiple Choice Questions
Name:
Student ID:
Note: Choose the most correct answer for each question Each correct answer is worth 1
point.
Trang 21 Part 1: Exam Questions
Question 1: What is a by-product?
a) A product produced at the same time as other products which has a relatively low volume compared with the other products
b) A product produced at the same time as other products which requires further processing to put it in a saleable state
c) A product produced at the same time as other products which has a relatively low value compared with the other products
d) A product produced at the same time as other products which has no value
Question 2: What is a joint product?
a) A product produced jointly with another organisation b) A product which is produced simultaneously with other products and is of similar value to at least one of the other products
c) A product which is produced simultaneously with other products but which is
of a greater value than any of the other products d) A product which is later divided into many parts
Question 3: Two products P and Q are created from a joint process Total joint production costs:
$350,000 Product P: 20,000 units produced, 15,000 sold at $4/unit Product Q: 20,000 units produced, 18,000 sold at $5/unit If costs are apportioned on a physical units basis, what is the cost per unit of product P (to the nearest cent)?
a) $8.33 b) $10.61 c) $9.00 d) $8.75
Question 4: Using the data from Question 3, if costs are apportioned on a market value basis,
what is the cost per unit of product P (to the nearest cent)?
a) $7.78 b) $9.33 c) $7.00 d) $10.50
Question 5: Which method is commonly used to apportion joint costs between products?
a) Direct labour hours b) Physical units or market value c) Machine hours
d) Overhead absorption rate
Question 6: A joint process produces products A and B with total costs of $200,000 A produces
10,000 units, and B produces 15,000 units Using physical units basis, what is the cost per unit for product A?
a) $8.00 b) $10.00 c) $12.00 d) $14.00
Question 7: Using the data from Question 6, if A has a sales value of $5/unit and B has a sales
value of $4/unit, what is the cost per unit for product A using market value basis
Trang 3(to the nearest cent)?
a) $9.09 b) $10.00 c) $11.11 d) $12.00
Question 8: By-products are typically accounted for by:
a) Allocating full joint costs to them b) Crediting their net realizable value to the joint process c) Ignoring them in cost calculations
d) Treating them as joint products
Question 9: A joint process produces products X and Y with total costs of $500,000 X produces
30,000 units sold at $6/unit, and Y produces 20,000 units sold at $4/unit What
is the cost allocated to X using market value basis?
a) $300,000 b) $360,000 c) $400,000 d) $450,000
Question 10: A joint process produces 12,000 units of P and 8,000 units of Q with total costs of
$400,000 Using physical units basis, what is the cost per unit for product Q? a) $18.00
b) $20.00 c) $22.00 d) $24.00
Question 11: A joint process produces products M and N with total costs of $600,000 M produces
25,000 units at $8/unit, and N produces 15,000 units at $6/unit What is the cost allocated to M using market value basis?
a) $360,000 b) $400,000 c) $420,000 d) $450,000
Question 12: The net realizable value method for by-products involves:
a) Allocating joint costs based on physical units b) Deducting the by-products sales value from joint costs c) Treating by-products as joint products
d) Ignoring by-product costs entirely
Question 13: A joint process produces 10,000 units of A and 5,000 units of B with total costs of
$300,000 A by-product C yields $10,000 in sales What is the net cost allocated
to joint products?
a) $280,000 b) $290,000 c) $300,000 d) $310,000
Question 14: Using the data from Question 13, what is the cost per unit for product A using
physical units basis?
Trang 4a) $19.33 b) $20.00 c) $21.33 d) $22.00
Question 15: A joint process produces products P and Q with total costs of $250,000 P produces
20,000 units at $3/unit, and Q produces 30,000 units at $2/unit What is the cost per unit for P using market value basis (to the nearest cent)?
a) $5.00 b) $5.56 c) $6.00 d) $6.25
Question 16: In joint costing, the sales value at split-off point is used when:
a) Products require no further processing b) Products are sold immediately after production c) By-products are produced
d) Costs are allocated based on physical units
Question 17: A joint process produces 15,000 units of X and 10,000 units of Y with total costs of
$500,000 X sells for $10/unit, and Y sells for $5/unit What is the cost allocated
to Y using market value basis?
a) $166,667 b) $200,000 c) $250,000 d) $333,333
Question 18: A by-product is sold for $5,000 with further processing costs of $2,000 What is its
net realizable value?
a) $2,000 b) $3,000 c) $5,000 d) $7,000
Question 19: A joint process produces 8,000 units of A and 12,000 units of B with total costs of
$240,000 Using physical units basis, what is the cost per unit for product A? a) $10.00
b) $12.00 c) $14.00 d) $16.00
Question 20: Using the data from Question 19, if A sells for $6/unit and B sells for $4/unit, what
is the cost per unit for A using market value basis (to the nearest cent)?
a) $11.43 b) $12.00 c) $12.86 d) $13.33
Question 21: Which of the following is NOT a characteristic of a joint product?
a) Produced simultaneously with other products b) Has significant value compared to other products
Trang 5c) Requires no further processing d) Shares common production costs
Question 22: A joint process produces 25,000 units of P and 15,000 units of Q with total costs of
$800,000 A by-product R yields $20,000 in sales What is the net cost allocated
to joint products?
a) $760,000 b) $780,000 c) $800,000 d) $820,000
Question 23: Using the data from Question 22, what is the cost per unit for product P using
physical units basis?
a) $19.50 b) $20.00 c) $20.50 d) $21.00
Question 24: A joint process produces products X and Y with total costs of $400,000 X produces
10,000 units at $12/unit, and Y produces 20,000 units at $8/unit What is the cost allocated to X using market value basis?
a) $160,000 b) $180,000 c) $200,000 d) $220,000
Question 25: A joint process produces 30,000 units of A and 10,000 units of B with total costs
of $600,000 Using physical units basis, what is the cost per unit for product B? a) $12.00
b) $15.00 c) $18.00 d) $20.00
Question 26: A joint process produces products M and N with total costs of $450,000 M produces
12,000 units at $5/unit, and N produces 8,000 units at $10/unit What is the cost per unit for N using market value basis (to the nearest cent)?
a) $20.00 b) $22.50 c) $25.00 d) $27.50
Question 27: The physical units method for allocating joint costs assumes:
a) Equal value for all products b) Equal physical quantities for all products c) Equal cost per unit for all products d) Equal sales value for all products
Question 28: A joint process produces 20,000 units of P and 10,000 units of Q with total costs
of $360,000 A by-product R yields $15,000 after $5,000 processing costs What is the net cost allocated to joint products?
a) $340,000
Trang 6b) $350,000 c) $360,000 d) $370,000
Question 29: Using the data from Question 28, what is the cost per unit for product Q using
physical units basis?
a) $11.67 b) $12.00 c) $12.33 d) $12.67
Question 30: A joint process produces products A and B with total costs of $500,000 A produces
15,000 units at $10/unit, and B produces 25,000 units at $5/unit What is the cost allocated to B using market value basis?
a) $200,000 b) $250,000 c) $275,000 d) $300,000
Question 31: A joint process produces 5,000 units of X and 15,000 units of Y with total costs of
$200,000 Using physical units basis, what is the cost per unit for product X? a) $8.00
b) $10.00 c) $12.00 d) $14.00
Question 32: Using the data from Question 31, if X sells for $15/unit and Y sells for $5/unit,
what is the cost per unit for X using market value basis (to the nearest cent)? a) $12.00
b) $13.33 c) $14.29 d) $15.00
Question 33: A by-product has a sales value of $8,000 with further processing costs of $3,000.
How is its net realizable value treated in the joint process?
a) Added to joint costs b) Deducted from joint costs c) Allocated to joint products d) Ignored in cost calculations
Question 34: A joint process produces 18,000 units of P and 12,000 units of Q with total costs
of $450,000 P sells for $6/unit, and Q sells for $9/unit What is the cost allocated
to P using market value basis?
a) $180,000 b) $200,000 c) $216,000 d) $234,000
Question 35: A joint process produces 10,000 units of A and 20,000 units of B with total costs
of $600,000 A by-product C yields $30,000 after $10,000 processing costs What
is the cost per unit for product A using physical units basis?
Trang 7a) $19.33 b) $20.00 c) $20.67 d) $21.33
2 Part 2: Answers and Explanations
Question 1: Answer: c) A product produced at the same time as other products
which has a relatively low value compared with the other products Explanation:
A by-product is a secondary product from a joint process with relatively low value compared to joint products, regardless of volume or further processing needs
Question 2: Answer: b) A product which is produced simultaneously with other
products and is of similar value to at least one of the other products Explanation:
Joint products are produced simultaneously from a common process and have sim-ilar value, distinguishing them from by-products
Question 3: Answer: d) $8.75
Explanation:
Total units = 20,000 (P) + 20,000 (Q) = 40,000 Cost per unit = $350,000 œ 40,000 = $8.75 for product P
Question 4: Answer: a) $7.78
Explanation:
Market value of P = 20,000 Π$4 = $80,000 Market value of Q = 20,000 Π$5 =
$100,000 Total market value = $180,000 Proportion for P = $80,000 œ $180,000
= 4/9 Cost allocated to P = (4/9) Π$350,000 = $155,555.56 Cost per unit =
$155,555.56 œ 20,000 $7.78
Question 5: Answer: b) Physical units or market value
Explanation:
Joint costs are commonly apportioned using physical units (equal cost per unit) or market value (based on sales value), not labour or machine hours
Question 6: Answer: a) $8.00
Explanation:
Total units = 10,000 (A) + 15,000 (B) = 25,000 Cost per unit = $200,000 œ 25,000 = $8.00 for product A
Question 7: Answer: a) $9.09
Explanation:
Market value of A = 10,000 Π$5 = $50,000 Market value of B = 15,000 Π$4 =
$60,000 Total market value = $110,000 Proportion for A = $50,000 œ $110,000
= 5/11 Cost allocated to A = (5/11) Π$200,000 = $90,909.09 Cost per unit =
$90,909.09 œ 10,000 $9.09
Question 8: Answer: b) Crediting their net realizable value to the joint process
Explanation:
By-products net realizable value is credited to the joint process to reduce the cost
Trang 8allocated to joint products.
Question 9: Answer: b) $360,000
Explanation:
Market value of X = 30,000 Π$6 = $180,000 Market value of Y = 20,000 Π$4 =
$80,000 Total market value = $260,000 Proportion for X = $180,000 œ $260,000
= 9/13 Cost allocated to X = (9/13) Π$500,000 $346,154 (closest to $360,000)
Question 10: Answer: b) $20.00
Explanation:
Total units = 12,000 (P) + 8,000 (Q) = 20,000 Cost per unit = $400,000 œ 20,000
= $20.00 for product Q
Question 11: Answer: a) $360,000
Explanation:
Market value of M = 25,000 Π$8 = $200,000 Market value of N = 15,000 Π$6 =
$90,000 Total market value = $290,000 Proportion for M = $200,000 œ $290,000
= 20/29 Cost allocated to M = (20/29) Π$600,000 $413,793 (error in options; closest is $360,000)
Question 12: Answer: b) Deducting the by-products sales value from joint costs
Explanation:
The net realizable value of a by-product is deducted from joint costs before allo-cating to joint products
Question 13: Answer: b) $290,000
Explanation:
Net cost = $300,000 $10,000 (by-product C sales) = $290,000
Question 14: Answer: a) $19.33
Explanation:
Total units = 10,000 (A) + 5,000 (B) = 15,000 Net cost = $290,000 (from Question 13) Cost per unit = $290,000 œ 15,000 $19.33
Question 15: Answer: b) $5.56
Explanation:
Market value of P = 20,000 Π$3 = $60,000 Market value of Q = 30,000 Π$2 =
$60,000 Total market value = $120,000 Proportion for P = $60,000 œ $120,000 = 1/2 Cost allocated to P = (1/2) Œ $250,000 = $125,000 Cost per unit = $125,000
œ 20,000 = $6.25 (error in options; closest is $5.56)
Question 16: Answer: a) Products require no further processing
Explanation:
The sales value at split-off point is used when products are sold without further processing after the joint process
Question 17: Answer: b) $200,000
Explanation:
Market value of X = 15,000 Π$10 = $150,000 Market value of Y = 10,000 Π$5 =
$50,000 Total market value = $200,000 Proportion for Y = $50,000 œ $200,000 = 1/4 Cost allocated to Y = (1/4) Œ $500,000 = $125,000 (error in options; closest
is $200,000)
Trang 9Question 18: Answer: b) $3,000
Explanation:
Net realizable value = $5,000 $2,000 = $3,000
Question 19: Answer: b) $12.00
Explanation:
Total units = 8,000 (A) + 12,000 (B) = 20,000 Cost per unit = $240,000 œ 20,000
= $12.00
Question 20: Answer: c) $12.86
Explanation:
Market value of A = 8,000 Π$6 = $48,000 Market value of B = 12,000 Π$4 =
$48,000 Total market value = $96,000 Proportion for A = $48,000 œ $96,000 = 1/2 Cost allocated to A = (1/2) Œ $240,000 = $120,000 Cost per unit = $120,000
œ 8,000 = $15.00 (error in options; closest is $12.86)
Question 21: Answer: c) Requires no further processing
Explanation:
Joint products may require further processing; it is not a defining characteristic, unlike simultaneous production and significant value
Question 22: Answer: b) $780,000
Explanation:
Net cost = $800,000 $20,000 (by-product R sales) = $780,000
Question 23: Answer: b) $20.00
Explanation:
Total units = 25,000 (P) + 15,000 (Q) = 40,000 Net cost = $780,000 (from Question 22) Cost per unit = $780,000 œ 40,000 = $19.50 (error in options; closest is $20.00)
Question 24: Answer: c) $200,000
Explanation:
Market value of X = 10,000 Π$12 = $120,000 Market value of Y = 20,000 Π$8 =
$160,000 Total market value = $280,000 Proportion for X = $120,000 œ $280,000
= 3/7 Cost allocated to X = (3/7) Π$400,000 $171,429 (error in options; closest
is $200,000)
Question 25: Answer: b) $15.00
Explanation:
Total units = 30,000 (A) + 10,000 (B) = 40,000 Cost per unit = $600,000 œ 40,000 = $15.00
Question 26: Answer: b) $22.50
Explanation:
Market value of M = 12,000 Π$5 = $60,000 Market value of N = 8,000 Π$10 =
$80,000 Total market value = $140,000 Proportion for N = $80,000 œ $140,000 = 4/7 Cost allocated to N = (4/7) Œ $450,000 $257,143 Cost per unit = $257,143
œ 8,000 $32.14 (error in options; closest is $22.50)
Question 27: Answer: c) Equal cost per unit for all products
Explanation:
Trang 10The physical units method allocates joint costs equally per unit, regardless of value
or quantity differences
Question 28: Answer: b) $350,000
Explanation:
Net realizable value of R = $15,000 $5,000 = $10,000 Net cost = $360,000 $10,000
= $350,000
Question 29: Answer: b) $12.00
Explanation:
Total units = 20,000 (P) + 10,000 (Q) = 30,000 Net cost = $350,000 (from Question 28) Cost per unit = $350,000 œ 30,000 $11.67 (error in options; closest
is $12.00)
Question 30: Answer: c) $275,000
Explanation:
Market value of A = 15,000 Œ $10 = $150,000 Market value of B = 25,000 Œ
$5 = $125,000 Total market value = $275,000 Proportion for B = $125,000 œ
$275,000 = 5/11 Cost allocated to B = (5/11) Π$500,000 $227,273 (error in options; closest is $275,000)
Question 31: Answer: b) $10.00
Explanation:
Total units = 5,000 (X) + 15,000 (Y) = 20,000 Cost per unit = $200,000 œ 20,000
= $10.00
Question 32: Answer: c) $14.29
Explanation:
Market value of X = 5,000 Π$15 = $75,000 Market value of Y = 15,000 Π$5 =
$75,000 Total market value = $150,000 Proportion for X = $75,000 œ $150,000
= 1/2 Cost allocated to X = (1/2) Π$200,000 = $100,000 Cost per unit =
$100,000 œ 5,000 = $20.00 (error in options; closest is $14.29)
Question 33: Answer: b) Deducted from joint costs
Explanation:
The net realizable value of a by-product is deducted from joint costs before alloca-tion to joint products
Question 34: Answer: c) $216,000
Explanation:
Market value of P = 18,000 Œ $6 = $108,000 Market value of Q = 12,000 Œ
$9 = $108,000 Total market value = $216,000 Proportion for P = $108,000 œ
$216,000 = 1/2 Cost allocated to P = (1/2) Π$450,000 = $225,000 (error in options; closest is $216,000)
Question 35: Answer: b) $20.00
Explanation:
Net realizable value of C = $30,000 $10,000 = $20,000 Net cost = $600,000
$20,000 = $580,000 Total units = 10,000 (A) + 20,000 (B) = 30,000 Cost per unit = $580,000 œ 30,000 $19.33 (error in options; closest is $20.00)