Question

Namen Morgen MATCHING Match the letter of each term or concept that corresponds with the explanations that follow Main product A Activity based costing system Activity driver H on value added activities By product Production budget cash budget Sales budget Joint cost K Split off point oint product C D E F 1 Budget that describes expected sales in units and dollars for the coming periods 2 Two or more products, each having relatively substantial value, that are produced simultaneously by the same process up to a split off point Cost accounting system that uses both unit and non unit based cost drivers to assign costs to cost objects by tracing costs to activities and then tracing costs from activities to products 4 Measure the demands that cost objects place on activities MULTIPLE CHOICE Select the one best answer 4 pt each It is recommended that you use blank space on the exam to do your computations for the multiple choices and not merely attempt to work them on your calculator JOINT COST ALLOCATION 5 Two products N and G are processed from the same raw material and then after slit off are further processed separately Joint costs $200 Hypothetical Market value Product Units Produced Ultimate Sell price Per unit Additional Processing cost Per unit $ 4 $ 9 N [market value not known at split off] joint cost assigne Using the net realizable value method * Joint Cost Individual hypothetical market value Total hypothetical market value A B C D 40 43 157 160 6 Using the quantity method based on output, assigned joint cost to N 76.90 123.04 Cost = Joint cost Allocated = 320.00 Per unit Total units Cost 325.00 Cost Per unit

Answer 1

Answer is given below

For Q. No. 5. Joint cost allocation question is not visible in photo for which product

hence given working. please select answer accordingly

1 Sales Budget Sales Budget gives the units and $ Value Budget for the coming budget Sales Budget is the basis for all budget in Master Budget preparation Joint Product Joint products are the products produced together in a process up to a split off point Activity Based Costing System In Activity Based Costing system the unit costs is allocated based on activities consumed Cost is traced to activities first and combined to cost pool Activity driver is determined to find activity rates Activity Driver Activity Driver is used in ABC Method to measure the demand for activities Activity Driver rates are used to allocated costs to products/services 5 N Product Sell price processing cost NRV Units NRV Sales value 80% Joint cost allocated $160 Joint cost allocated to Product N $160 Joint cost allocated to Product G $40 N Product Units G 85 Joint Cost allocated $123.08 $76.92 Joint cost allocated to Nis $123.04