Ranger Company produces three products from a joint process.Products Simple and Complex are considered main products.Product Deluxe is a by-product.Joint-processing costs should be allocated to ________.
A)Simple and Complex
B)Simple and Deluxe
C)Complex and Deluxe
D)Simple,Complex and Deluxe

Question

Quizplus · Accepted Answer

Joint-processing costs should be allocated to main products only, which in this case are Simple and Complex. By-products such as Deluxe should not be allocated any joint-processing costs.

Ranger Company Produces Three Products from a Joint Process