Manufacturing companies are required to allocate joint-process costs in the valuation of inventories and cost of goods sold for

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Manufacturing companies are required to allocate joint-process costs in the valuation of inventories and cost of goods sold for both financial reporting and tax reporting. It is necessary to accurately reflect the costs incurred during the production process and to comply with accounting and tax regulations. Additionally, managerial reporting may also benefit from this information for decision-making purposes.

Manufacturing Companies Are Required to Allocate Joint-Process Costs in the Valuation