Which of the following cost items is not allocable as joint costs when a single manufacturing process produces several main products and several by-products?
A)Direct materials
B)Variable overhead
C)Direct labor
D)Fixed overhead
E)Freight-out

Question

Quizplus · Accepted Answer

Freight-out is not a part of the manufacturing process and is not a cost incurred during the production of main products and by-products. Therefore, it cannot be allocated as joint costs.

Which of the Following Cost Items Is Not Allocable as Joint