Saldivar, Leonardo Jr., T.

BrantCorporationmanufacturestwoproductsoutofajointprocessScoutandAndro.Thejointcosts
incurredare$400,000forastandardproductionrunthatgenerates70,000poundsofScoutand
30,000poundsofAndro.Scoutsellsfor$9.00perpoundandAndrosellsfor$7.00perpound.

1.[CMAAdapted]Iftherearenoadditionalprocessingcostsincurredafterthesplitoffpoint,the
amountofjointcostofeachproductionrunallocatedtoScoutonaphysicalquantitybasisis

a.$100,000.b.$120,000.c.$280,000.d.$300,000.
Answer:C
2.[CPAAdapted]Forpurposesofallocatingjointcoststojointproducts,thesalesvalueatsplitoff
methodcouldbeusedinwhichofthefollowingsituations?
Nocostsbeyondsplitoff

Costbeyondsplitoff

a.

No

No

b.

Yes

No

c.

No

Yes

d.

Yes

Yes

Answer:B

Quizmundo, Patricia Jean

1. ProductsGandHarejointproductsdevelopedfromthesameprocesswitheachbeing
processedfurther.Jointcostsareincurreduntilsplitoff,theseparablecostsareincurredin
furtherrefiningeachproduct.Salesvalueatsplitoffmethodisusedtoallocatejointcosts.If
thesalesvalueofGatsplitoffincreasesandallothercostsandsellingpricesremain
unchanged,thegrossmarginof

GH

a.

increases

increases

b.

decreases

increases

c.

decreases

decreases

d.

increases

decreases

Answer:D
2. BrantCorporationmanufacturestwoproductsoutofajointprocessScoutandAndro.The
jointcostsincurredare$400,000forastandardproductionrunthatgenerates70,000poundsof
Scoutand30,000poundsofAndro.Scoutsellsfor$9.00perpoundandAndrosellsfor$7.00
perpound.
Iftherearenoadditionalprocessingcostsincurredafterthesplitoffpoint,theamountofjointcost
ofeachproductionrunallocatedtoAndroonasalesvalueatsplitoffbasisis

a.$100,000.b.$175,000.c.$225,000.d.$300,000.
Answer:D