31.Joint costs are commonly allocated based upon relative:

a.Sales value.

b.Marketing costs.

c.Conversion costs.

d.Prime costs.

32.Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process, which last year, cost $300,000. Budde produced 15,000 gallons of X15, which sells for $40 per gallon and 45,000 gallons of Z24, which sells for $20 per gallon. Using the relative sales method, how much of the joint cost should be allocated to X15?

a.$100,000

b.$200,000

c.$60,000

d.$75,000

33.If a company produces two products, A and B, from a joint process, and B requires additional processing after the split-off in order to be salable, how is the joint cost allocated to B determined?

a.The costs of the additional processing are ignored in allocating joint costs.

b.The costs of the additional processing are subtracted from the joint costs allocated to B.

c.The relative sales value used to allocate the joint cost are determined after the costs of further processing are subtracted from the ultimate sales value of B.

d.None of these are correct.

34.Budde Chemicals produces two industrial chemical compounds, X15 and Z24, from the same process, which last year, cost $300,000. Budde produced 15,000 gallons of X15, which sells for $40 per gallon and 45,000 gallons of Z24, which sells for $20 per gallon. After the split-off point, X15 required additional processing costing $200,000 to make it salable. Using the adjusted sales method, how much of the joint cost should be allocated to X15?

a.$100,000

b.$240,000

c.$60,000

d.$75,000