Use the following information for the next 6 questions.
J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow:
-If J-M uses the sales value at split-off point method and sells products at the split-off point, what is the gross profit for product T?
A) $1,000
B) $(500)
C) $1,500
D) $3,000

Question

Use the following information for the next 6 questions.
J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow: 
-If J-M uses the sales value at split-off point method and sells products at the split-off point, what is the gross profit for product T?
A) $1,000 
B) $(500) 
C) $1,500 
D) $3,000

Quizplus · Accepted Answer

The sales value at split-off point method allocates joint costs based on the relative sales value of each product at the split-off point. If product T is sold at the split-off point, its gross profit is calculated by subtracting its allocated joint costs from its sales value. Given the options, $1,000 is the correct gross profit for product T.

Use the Following Information for the Next 6 Questions