RKH Corporation produces three joint products. During a recent accounting period, joint costs totalled $365 and RKH had no beginning inventories. Additional data appear below: $\begin{array}{lrrr}
& \underline{\text { M1 }}& \underline{ \text { M2 } }& \underline{\text { M 3}}\
\text { Volume (kilograms) } & 150 & 50 & 300\
\text { Sales value at the split-off point } & \$ 375 & \$ 155 & \$ 600 \
\text { Sales value after further processing } & \$ 450 & \$ 200 & \$ 900 \
\text { Separable costs } & \$ 50 & \$ 35 & \$ 100
\end{array}$ Which of the following methods will result in the smallest joint cost allocation to M3?

Question

Quizplus · Accepted Answer

The Sales value at split-off point method allocates joint costs based on the relative sales value of the joint products at the split-off point, which is the point in the production process where the joint products can be recognized as separate products. Since M3 has the lowest sales value, allocating joint costs based on this method will result in the smallest allocation to M3.

RKH Corporation Produces Three Joint Products Which of the Following Methods Will Result in the Smallest