Question

howeys candy company manufactures five different types of tasty candies that start with a base of sugar milk and butter. Howeys processes these three raw materials together in the adding, mixing, and heating phases of making the candies. Once the mixture is prepared, it is separated into the proper portions of making each type of candy. In separate processes, cocoa, peanut butter, various flavors, various nuts, and orger ingredients are added in separate production lines. Finally the candies are individually wrapped and then packaged to be sold to retailers.

What are the joint costs associated with Howey's candy manufacturing?

What are the separate costs associated with Howey's candy manufacturing?

Chapter 5 Study Guide - Support Department and Joint Cost Allocation Flowey's Candy Company manufactures five different types of tasty candies that start with a base of . Howey's processes these three raw materials together in the adding, mixing, and heatin making the candies. Once the mixture is prepared, it is separated into the proper po proper portions for making of candy. In sen way. In separate processes, cocoa, peanut butter, various flavors, various nuts, and other ingr added in separate production lines. Finally, the candies are individually wrapped and then packaged to retailers. a) What are the joint costs associated with Howey's candy manufacturing b) What are the separate costs associated with Howey's candy manufacturing Use one of these terms to complete the sentences below: physical units method, net realizable meth average method, market value at split-off method. a) The method of joint cost allocation that allocates costs based on an objective, quantitative pounds, square feet, or gallons is the b) Because physical units alone are insufficient for providing the most reasonable alloca companies modify it by including important factors such as the type of labor needed for the difficulty of producing each product, and the estimated wear and tear on machines e product in the - The method of joint cost allocation that allocates costs based on each product's total marke off is the The method of joint cost allocation that allocates costs based on the estimated selling pric finished products minus the costs to further process each product beyond the split-

Answer 1

Joint costs are the cost which are incurred in joint process. Here process is the basic process and common for all the different products.
After completion joint process, all the products are processed seprately or sometimes some products are ready to be sold at this point also.
Joint Cost are as follows:
Cost of Sugar, Milk, Butter
Cost incurred while adding, mixing and heating the base
Cost of seprating the mixture
Seprate Costs
Cost of Cocoa, peanut butter, flavours, nuts, orger ingredients
Cost of wrapping and packaging and marketing and selling.

updated answer

Joint costs are the cost which are incurred in joint process. Here process is the basic process and Explanation common for all the different products. After completion joint process, all the products are processed seprately or sometimes some products are ready to be sold at this point also. Joint Cost are as follows: Cost of Sugar, Milk, Butter Cost incurred while adding, mixing and heating the base Cost of seprating the mixture Seprate Costs Cost of Cocoa, peanut butter, flavours, nuts, orger ingredients Cost of wrapping and packaging and marketing and selling. Answers for the Bracakets below It allocates the cost by taking the base of Units, Quantity or such numbers. Physical Units Method. average method Here, if market value at split off point is available for all products, than this method can be used by taking the ratio of market value Market Value at split off point It calculates the Net realizable value of joint products by deducting the further process cost from sale value after further processing. Net realizable method