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Use the Following Information for the Next 2 Questions

Question 120

Multiple Choice

Use the following information for the next 2 questions.
A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows: Use the following information for the next 2 questions. A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows:   -Assume the total final sales value of a set of joint products exceeds the total joint costs, and that the incremental revenue from processing each product further exceeds the separable costs. Which joint cost allocation method could result in the reporting of a loss for some products and a profit for others? A)  Net realizable value method B)  Physical output method C)  Sales value at split-off method D)  Constant gross margin net realizable value method
-Assume the total final sales value of a set of joint products exceeds the total joint costs, and that the incremental revenue from processing each product further exceeds the separable costs. Which joint cost allocation method could result in the reporting of a loss for some products and a profit for others?


A) Net realizable value method
B) Physical output method
C) Sales value at split-off method
D) Constant gross margin net realizable value method

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