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12. which of the following are considered inventonable costs? Rework Costs Normal Spoilags (a) (b) YES NO YES NO NO No YES YES 13. Charlottetown

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12. which of the following are considered inventonable costs? Rework Costs Normal Spoilags (a) (b) YES NO YES NO NO No YES YES 13. Charlottetown Manufacturing Company manufactures three products from a joint process. The total joint cost incurred with these products is S50,000. Product 1 has no sales value at the split off point. However, if the company incurs additional processing costs of $10,000, they will have a product that can be sold for $25 per unit. Product 2 can be sold for $15 per unit at split off, but management prefers to process it further at a cost of $13,000. increasing the selling price of the final product to $70. Product 3 is usually sold at split off for $80 per unit. For the year, 3,500 output units were produced. Product I's production exceeded Product 2's by three hundred, while Product 3's production exceeded Product I's by two hundred. What is the amount of the joint cost that should be allocated to product 1, assuming the company allocates joint costs using the net realizable value method with equal gross margins for each product (rounded to the nearest whole dollar)? (a) s683 (b) 8,671. (c) S16,667. (d) 6,667. 14. Windsor Manufacturing Company incurs costs of $$25,000 in the production nagement wants to decrease R's production by 500 of R and S in a joint process. Currently, 2,000 of R and 1,500 of S are being produced each month. Man units in order to increase the production of S by 1,000 units. Additionally this change will require minor modifications which will add $75,000 to the joint cost. This cost is entirely attributable to product S. What is the amount of the joint costs allocable to R and s, before changes to the current production process, assuming Windsor allocates its joint costs according to the proportion of R and S produced? (a) $262,500 $262,500 (b) $196,875 $328,125 (c) $300,000 $225,000 (d) $225,000 S375,000

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