361-Chapter-11-MC-Solutions-(Handmade)

Chapter11--AllocationofJointCostsandAccountingforBy-ProductsTRUE/FALSE1.Jointcostsoccurafterthesplit-offpointinaproductionprocessANS:FDIF:EasyOBJ:11-12.Jointcostsoccurbeforethesplit-offpointinaproductionprocessANS:TDIF:EasyOBJ:11-13.Jointcostsareallocatedtoby-productsaswellasprimaryproducts.ANS:FDIF:EasyOBJ:11-14.Theprimarydistinctionbetweenby-productsandscrapisthedifferenceinsalesvalue.ANS:TDIF:EasyOBJ:11-15.Theprimarydistinctionbetweenby-productsandscrapisthedifferenceinvolumeproduced.ANS:FDIF:EasyOBJ:11-16.ThepointatwhichindividualproductsarefirstidentifiableinajointprocessisreferredtoasthesplitoffpointANS:TDIF:EasyOBJ:11-27.Jointcostsincludeallmaterials,laborandoverheadthatareincurredbeforethesplit-offpoint.ANS:TDIF:EasyOBJ:11-18.Twomethodsofallocatingjointcoststoproductsarephysicalmeasureallocationandmonetaryallocation.ANS:TDIF:EasyOBJ:11-49.Adecisionthatmustbemadeatsplit-offistosellaproductorprocessitfurther.ANS:TDIF:EasyOBJ:11-310.Allocatingjointcostsbaseduponaphysicalmeasureignorestherevenue-generatingabilityofindividualproducts.ANS:TDIF:ModerateOBJ:11-411.Allocatingjointcostsbaseduponaphysicalmeasureconsiderstherevenue-generatingabilityofindividualproducts.ANS:FDIF:ModerateOBJ:11-415312.Monetaryallocationmeasuresrecognizetherevenuegeneratingabilityofeachproductinajointprocess.ANS:TDIF:ModerateOBJ:11-413.Therelativesalesvaluemethodrequiresacommonphysicalunitformeasuringtheoutputofeachproduct.ANS:FDIF:EasyOBJ:11-414.Jointcostsareallocatedtomainproducts,butnottoby-productsANS:TDIF:EasyOBJ:11-515.Netrealizablevalueequalsproductsalesrevenueatsplit-offplusanycostsnecessarytoprepareanddisposeoftheproduct.ANS:FDIF:ModerateOBJ:11-416.Netrealizablevalueequalsproductsalesrevenueatsplit-offminusanycostsnecessarytoprepareanddisposeoftheproduct.ANS:TDIF:ModerateOBJ:11-417.Ifincrementalrevenuesbeyondsplit-offarelessthanincrementalcosts,aproductshouldbesoldatthesplit-offpoint.ANS:TDIF:ModerateOBJ:11-418.Ifincrementalrevenuesbeyondsplit-offexceedincrementalcosts,aproductshouldbeprocessedfurther.ANS:TDIF:ModerateOBJ:11-419.Thenetrealizablevalueapproachrequiresthatthenetrealizablevalueofby-productsandscrapbetreatedasareductioninjointcostsallocatedtoprimaryproducts.ANS:TDIF:ModerateOBJ:11-420.Netrealizablevalueisconsideredtobethebestmeasureoftheexpectedcontributionofeachproducttothecoverageofjointcosts.ANS:TDIF:ModerateOBJ:11-421.Thenetrealizablevalueapproachisusedtoaccountforscrapandby-productswhenthenetrealizablevalueisinsignificant.ANS:FDIF:ModerateOBJ:11-515422.Thenetrealizablevalueapproachisusedtoaccountforscrapandby-productswhenthenetrealizablevalueissignificant.ANS:TDIF:ModerateOBJ:11-523.Undertherealizedvalueapproach,novalueisrecognizedforby-productsorscrapuntiltheyareactuallysold.ANS:TDIF:ModerateOBJ:11-524.Underthenetrealizablevalueapproach,novalueisrecognizedforby-productsorscrapuntiltheyareactuallysold.ANS:FDIF:ModerateOBJ:11-525.Not-for-profitentitiesarerequiredtoallocatejointcostsamongfund-raising,program,andadministrativefunctions.ANS:TCOMPLETION1.Asingleprocessinwhichoneproductcannotbemanufacturedwithoutproducingothersisreferredtoasa__________________________.ANS:jointprocessDIF:EasyOBJ:11-1DIF:ModerateOBJ:11-62.Coststhatareincurredinthemanufactureoftwoormoreproductsfromacommonprocessarereferredtoas___________________________.ANS:jointcostsDIF:EasyOBJ:11-13.Coststhatareincurredafterthesplit-offpointinaproductionprocessarereferredtoas______________________________.ANS:separatecostsDIF:EasyOBJ:11-14.Threetypesofproductsthatresultfromajointprocessare_______________,______________,and____________________.ANS:jointproducts,byproducts,scrapDIF:EasyOBJ:11-11555.Twoincidentalproductsofajointprocessare_____________________and____________________.ANS:by-products;scrapDIF:EasyOBJ:11-16.Thepointatwhichindividualproductsarefirstidentifiableinajointprocessisreferredtoasthe_____________________________.ANS:split-offpointDIF:EasyOBJ:11-27.Twomethodsofallocatingjointcoststoindividualproductsare______________________and___________________________.ANS:physicalmeasurementallocation;monetaryunitallocationDIF:ModerateOBJ:11-48.Threemonetarymeasuresusedtoallocatejointcoststoproductsare____________________________,_____________________________________,and____________________________________________.ANS:salesvalueatsplit-off;netrealizablevalueatsplit-off;approximatednetrealizablevalueatsplit-offDIF:ModerateOBJ:11-49.Salesrevenueatsplit-offlessdisposalcostsequals______________________________.ANS:netrealizablevalue.DIF:EasyMULTIPLECHOICE1.Ifacompanyobtainstwosalableproductsfromtherefiningofoneore,therefiningprocessshouldbeaccountedforasa(n)a.mixedcostprocess.b.jointprocess.c.extractiveprocess.d.reductionprocess.ANS:BDIF:EasyOBJ:11-1OBJ:11-42.Jointcostsareallocatedtojointproductstoa.obtainacostperunitforfinancialstatementpurposes.b.provideaccuratemanagementinformationonproductioncostsofeachtypeofproduct.c.computevariancesfromexpectedcostsforeachjointproduct.d.allowtheuseofhigh-lowanalysisbythecompany.ANS:ADIF:EasyOBJ:11-11563.Jo