If a company's two joint products can be sold at the split-off point,there is no reason for allocating the joint costs to the products.Just because they can be sold,doesn't mean that they are all sold.

Question

Quizplus · Accepted Answer

Even if the joint products can be sold at the split-off point, it is still necessary to allocate joint costs to determine the cost of each product. This is important for decision-making purposes and for accurate cost accounting. Additionally, inventory valuation would still require allocation of joint costs to determine the total cost of the products in inventory.

If a Company's Two Joint Products Can Be Sold at the Split-Off