LAKSHYA INDIAN INSTITUTE OF COMMERCE

CMA USA
QUESTION PRACTICE

Joint product By-product Practice Questions

Physical Unit Method

1. A company produces three joint products: A, B, and C. The physical quantities

produced are 5,000 units, 8,000 units, and 7,000 units, respectively. If total
joint costs are $120,000, calculate the joint cost allocation for each product
using the physical quantity method.

2. Determine the joint cost allocation using the physical quantity method if
Product X has a production quantity of 3,000 units, Product Y has 5,000 units,
and total joint costs are $50,000.

3. Company XYZ produces two joint products, M and N, with production

quantities of 10,000 units and 15,000 units, respectively. If total joint costs are
$80,000, calculate the joint cost allocation using the physical quantity method.

4. A manufacturing process produces four joint products: P, Q, R, and S, with

production quantities of 6,000 units, 8,000 units, 4,000 units, and 2,000 units,
respectively. If total joint costs are $150,000, determine the joint cost allocation
using the physical quantity method.
5. Calculate the joint cost allocation using the physical quantity method if Product
A has a production quantity of 4,000 units, Product B has 6,000 units, and total
joint costs are $70,000.

6. A company has three joint products: X, Y, and Z, with production quantities of

12,000 units, 18,000 units, and 10,000 units, respectively. If total joint costs are
$90,000, determine the joint cost allocation using the physical quantity method.

7. Given the production quantities - Product A: 8,000 units, Product B: 5,000

units, and Product C: 3,000 units, and total joint costs of $60,000, calculate the
joint cost allocation for each product using the physical quantity method.
8. A manufacturing process produces two joint products, P and Q, with production
quantities of 20,000 units and 25,000 units, respectively. If total joint costs are
$120,000, calculate the joint cost allocation using the physical quantity method.

9. Company ABC produces two joint products, X and Y, with production

quantities of 15,000 units and 12,000 units, respectively. If total joint costs are
$100,000, determine the joint cost allocation using the physical quantity
method.

10. Determine the joint cost allocation using the physical quantity method if
Product M has a production quantity of 7,000 units, Product N has 10,000
units, and total joint costs are $80,000.

Sales Value at Split off Method

1. Company XYZ produces three joint products with sales values at split-off as
follows: Product A - $25,000, Product B - $30,000, Product C - $20,000. If
total joint costs are $100,000, calculate the allocation of joint costs for each
product using the sales value at split-off point method.

2. A manufacturing process results in two joint products, X and Y. The sales

values at split-off point are $40,000 and $60,000, respectively. If total joint
costs are $80,000, determine the joint cost allocation using the sales value at
split-off point method.
3. Given the sales values at split-off point - Product P: $15,000, Product Q:
$25,000, and Product R: $10,000, and total joint costs of $60,000, calculate the
joint cost allocation for each product using the sales value at split-off point
method.

4. A company produces four joint products with sales values at split-off as

follows: A - $35,000, B - $20,000, C - $25,000, D - $15,000. If total joint costs
are $100,000, determine the joint cost allocation using the sales value at split-
off point method.

5. Calculate the allocation of joint costs using the sales value at split-off point
method if Product X has a sales value of $50,000, Product Y has a sales value
of $30,000, and total joint costs are $120,000.
6. A manufacturing process produces two joint products, M and N. The sales
values at split-off point are $40,000 and $60,000, respectively. If total joint
costs are $100,000, calculate the joint cost allocation using the sales value at
split-off point method.

7. A company has three joint products: X, Y, and Z, with sales values at split-off
of $15,000, $25,000, and $10,000, respectively. If total joint costs are $60,000,
determine the joint cost allocation using the sales value at split-off point
method.

8. Given the sales values at split-off point - Product A: $30,000, Product B:

$25,000, and Product C: $15,000, and total joint costs of $80,000, calculate the
joint cost allocation for each product using the sales value at split-off point
method.

9. A manufacturing process produces two joint products, P and Q. The sales

values at split-off point are $50,000 and $70,000, respectively. If total joint
costs are $120,000, determine the joint cost allocation using the sales value at
split-off point method.

10. Company ABC produces two joint products, X and Y, with sales values at split-
off of $35,000 and $25,000, respectively. If total joint costs are $80,000,
calculate the joint cost allocation using the sales value at split-off point method.

Net Realizable Value Method

1. A company produces two joint products, P and Q. Joint cost up to split off is
$95,000 Product P has 3,000 units with a selling price of $10 per unit, and
Product Q has 5,000 units with a selling price of $8 per unit. P & Q can be
processed further, if they are processed further then the selling price for P & Q
would be $15 & $20 respectively. Additional processing costs for P are
$15,000, and for Q are $30,000. Calculate the allocation of joint costs using the
net realizable value method.

2. Determine the joint cost allocation using the net realizable value method if
Joint product A has a selling price of $18 per unit (12,000 units) and Joint
 product B has a selling price of $14 per unit (15,000 units). Selling price after
further process for A & B are $25 & $15 respectively. Additional processing
costs for A are $40,000, and for B are $20,000. Joint cost was $150,000.

3. A manufacturing process results in two joint products, X and Y. Joint cost for
the company was $125,000. Product X has 4,000 units with a selling price of
$8 per unit, and Product Y has 6,000 units with a selling price of $6 per unit.
Selling price after further process for X & Y are $10 & $7 respectively.
Additional processing costs for X are $3,000, and for Y are $2,000. Calculate
the allocation of joint costs using the net realizable value method. Also
calculate the total per unit cost of each product.

4. Given the selling prices at split-off point - Product A: $12 per unit (15,000
units), Product B has no value at the split off point, B should be processed
further to sell it, number of units B has is 8,000 units, and Product C: $8 per
unit (6,000 units), and total joint costs of $80,000. Selling price after the split
off point, for A $18 & for B $10. Company doesn’t have the technology to
process C further thus it is sold at the split off. Separable cost for A is $105,000
and for B is $75,000. Calculate the joint cost allocation for each product using
the net realizable value method and also calculate the per unit cost of JC
allocated to each product.

5. A company produces two joint products, M and N. Product M has 25,000 units
with a selling price of $18 per unit, and Product N has 35,000 units with a
selling price of $15 per unit. Selling price after further process for M & N are
$20 & $16. Additional processing costs for M are $60,000, and for N are
$40,000. Calculate the allocation of joint costs using the net realizable value
method.

6. Determine the joint cost allocation using the net realizable value method if
Joint product X has a selling price of $14 per unit (45,000 units) and Joint
product Y has a selling price of $10 per unit (60,000 units). Selling price if the
product A is processed further is $25. Y is sold at the split off. Additional
processing costs for X are $250,000. If the product A is processed further, from
the past experience it is known that 5,000 units will be lose during the process.
Joint cost is $450,000. Also calculate the total per unit cost of product X.
7. A manufacturing process produces three by-products: A, B, and C. Product A
has 60,000 units with a selling price of $90 per unit, B has 90,000 units with a
selling price of $65 per unit, and C has 50,000 units with a selling price of $52
per unit. Additional processing costs for A are $950,000, for B are $330,000,
and for C are $215,000. Selling price after further process is for A $120, for B
$70 & for C $55. During the process of product A further company will lose
10% of the units. Calculate the allocation of joint costs using the net realizable
value method and also calculate the per unit cost of each product.

8. Given the selling prices at split-off point - Product P: $16 per unit (2,000 units),
Product Q: $12 per unit (3,000 units), and Product R: $10 per unit (4,000
units), and total joint costs of $70,000. Product Q and R are sold immediately
after the split off and product P is processed further. Selling price of P after
process is $20. Further processing cost is $4,500. 150 units is unavoidable loss
during the process. Calculate the joint cost allocation for each product using the
net realizable value method.

9. A company produces two by-products, X and Y. Joint cost as follow: - DM

$50,000 & DL $25,000. Product X has 3,000 units with a selling price of $20
per unit, and Product Y has 4,000 units with a selling price of $15 per unit.
Selling price after further process is $25 for product X and $30 for product Y.
Additional processing costs for X are $84,000, and for Y are $50,000. Calculate
the allocation of joint costs using the net realizable value method and also
calculate per unit JC allocated to each product.

10. Determine the joint cost allocation using the net realizable value method if
Joint Product M has a selling price of $25 per unit (2,000 units) and Joint
Product N has a selling price of $18 per unit (3,000 units). Selling price after
further process is $55 for M and $35 for N. Additional processing costs for M
are $45,000, and for N are $30,000. It is known that 15% of the both product
will lose during the further process.
Constant Gross Margin

1. A manufacturing company incurs joint costs of $120,000 in producing two joint

products, X and Y. Product X has a production quantity of 5,000 units with a
selling price of $30 per unit and additional separable costs of $8,000. Product Y
has a production quantity of 7,000 units with a selling price of $20 per unit and
additional separable costs of $5,000. Apply the Constant Gross Margin Method
to allocate joint costs.
2. A chemical plant produces three joint products, A, B, and C, incurring total
joint costs of $180,000. Product A has a production quantity of 8,000 units with
a selling price of $25 per unit and additional separable costs of $12,000.
Product B has a production quantity of 12,000 units with a selling price of $18
per unit and additional separable costs of $8,000. Product C has a production
quantity of 5,000 units with a selling price of $30 per unit and additional
separable costs of $10,000. Apply the Constant Gross Margin Method for joint
cost allocation.

3. An electronics company produces two joint products, P and Q, incurring total

joint costs of $150,000. Product P has a production quantity of 6,000 units with
a selling price of $40 per unit and additional separable costs of $10,000.
Product Q has a production quantity of 8,000 units with a selling price of $30
per unit and additional separable costs of $7,000. Apply the Constant Gross
Margin Method to allocate joint costs.

4. A pharmaceutical company manufactures two joint products, M and N, with

total joint costs of $100,000. Product M has a production quantity of 4,000
units with a selling price of $35 per unit and additional separable costs of
$6,000. Product N has a production quantity of 6,000 units with a selling price
of $25 per unit and additional separable costs of $4,000. Apply the Constant
Gross Margin Method for joint cost allocation.

5. A food processing plant incurs total joint costs of $80,000 in producing three
joint products, R, S, and T. Product R has a production quantity of 7,000 units
with a selling price of $20 per unit and additional separable costs of $8,000.
Product S has a production quantity of 10,000 units with a selling price of $15
per unit and additional separable costs of $5,000. Product T has a production
quantity of 5,000 units with a selling price of $25 per unit and additional
separable costs of $6,000. Apply the Constant Gross Margin Method to allocate
joint costs.

6. A textile company produces two joint products, X and Y, with total joint costs
of $90,000. Product X has a production quantity of 5,000 units with a selling
price of $30 per unit and additional separable costs of $7,000. Product Y has a
production quantity of 8,000 units with a selling price of $22 per unit and
additional separable costs of $5,000. Apply the Constant Gross Margin Method
for joint cost allocation.
7. A steel manufacturing company incurs total joint costs of $200,000 in
producing four joint products, A, B, C, and D. Product A has a production
quantity of 12,000 units with a selling price of $18 per unit and additional
separable costs of $15,000. Product B has a production quantity of 15,000 units
with a selling price of $12 per unit and additional separable costs of $10,000.
Product C has a production quantity of 8,000 units with a selling price of $20
per unit and additional separable costs of $12,000. Product D has a production
quantity of 10,000 units with a selling price of $15 per unit and additional
separable costs of $8,000. Apply the Constant Gross Margin Method to allocate
joint costs.

8. An automotive manufacturing company produces two joint products, P and Q,

with total joint costs of $120,000. Product P has a production quantity of 6,000
units with a selling price of $25 per unit and additional separable costs of
$8,000. Product Q has a production quantity of 8,000 units with a selling price
of $18 per unit and additional separable costs of $5,000. Apply the Constant
Gross Margin Method for joint cost allocation.

9. A petrochemical refinery incurs total joint costs of $150,000 in producing three

joint products, X, Y, and Z. Product X has a production quantity of 9,000 units
with a selling price of $20 per unit and additional separable costs of $10,000.
Product Y has a production quantity of 12,000 units with a selling price of $15
per unit and additional separable costs of $8,000. Product Z has a production
quantity of 6,000 units with a selling price of $25 per unit and additional
separable costs of $12,000. Apply the Constant Gross Margin Method to
allocate joint costs.

10. A chemical refinery produces two joint products, A and B, with total joint costs
of $100,000. Product A has a production quantity of 4,000 units with a selling
price of $30 per unit and additional separable costs of $5,000. Product B has a
production quantity of 6,000 units with a selling price of $25 per unit and
additional separable costs of $4,000. Apply the Constant Gross Margin Method
for joint cost allocation.