1. If there are no additional processing costs incurred after the splitoff point, the amount of joint cost of each production run allocated to Scout on a physical-quantity basis is (rounded)

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2. If additional processing costs beyond the splitoff point are $1.00 per pound for Scout and $2.333333 per pound for Andro, the amount of joint cost of each production run allocated to Andro on an net-realizable-value basis is?

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3. Products G and H are joint products developed from the same process with each being processed further. Joint costs are incurred until splitoff, the separable costs are incurred in further refining each product. Sales value at splitoff method is used to allocate joint costs. If the sales value of G at splitoff increases and all other costs and selling prices remain unchanged, the gross margin of

---------------------G -----------------------H

a. increases increases

b. decreases increases

c. decreases decreases

d. increases decreases

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4. Tanner Company manufactures products K and B from a joint process. Product K has been allocated $4,500 of total joint costs of $30,000 for the 1,500 units produced. K can be sold at the splitoff point for $4 per unit, or it can be processed further with additional costs of $2,000 and sold for $7 per unit. If K is processed further and sold, the result would be

a. a loss of $1,500 from further processing

b. a gain of $1,000 from further processing.

c. a gain of $2,500 from further processing.

d. a break-even situation.

SHOW YOUR CALCULATIONS