Joint Cost Allocation A joint cost is a cost of a single manufacturing process with several...
Joint Cost Allocation
A joint cost is a cost of a single manufacturing process with several different outputs or products. Joint Cost allocation is sometimes necessary to determine the cost of one of the joint products that results the single manufacturing process. Click on the link below to and watch this video on how chicken is processed for an illustration on the joint cost process and answer the following questions:
http://www.youtube.com/watch?v=W6qppv4Xuqs
Identify the split off point shown in the video.
Identify at least 3 joint products shown in the video
Identify the separate costs associated with processing the chicken further.
Homework Answers
Observations from the video
1. From the video that chicken is first cut from the live bird and put it in to the on the inverted cone shape top .
2. First there skin is removed and the second there wings will be separated and body will also be separated .
In these spit off point is chicken is moved from the accelerated wings removing
And they are separated in to wings and leg pieces
Leg pieces are separated and made in fried in to eatable item
Wing and body parts are maked in salable item
In these joint cost are up to the when it is separated in to wings and leg pieces
Separate cost are leg pieces are made in to final product
And wings are made in to salable item
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Joint Cost Allocation
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