10

McBride's Dairy has 200 gallons of cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. The amount of this cost that will be allocated to skimmed milk using the physical units method is

a.$750

b.$1,000

c.$250

d.$0

11

When weight factors are used in the weighted average method, they are

a.subtracted from the actual physical units to arrive at weighted physical units

b.added to the actual physical units to arrive at weighted physical units

c.divided by the actual physical units to arrive at weighted physical units

d.multiplied by the actual physical units to arrive at weighted physical units

12

Which of the following is not the type of work done in a support department?

a.maintenance work done to keep production machines running smoothly

b.safety and security services provided to keep the production facility safe

c.production work on an assembly line that makes a product

d.janitorial services provided for the production facility

13

Which of the following statements is false about joint manufacturing processes?

a.Companies producing joint products often allocate joint costs to individual products.

b.Joint manufacturing processes are simple and rarely require careful attention from managers when analyzing and interpreting product costs that include joint costs.

c.Joint costs are by definition inseparable.

d.Product costs are more accurate if joint costs are allocated to individual products.