Can you please help me to solve these true or false problems? So that I can compare and recheck your answers on mine too. Thank you!
1. The different methods of allocating joint cause, in effect, make use of weighted average cost. 2. The processing of joint products and by-products follow the selective product flow. 3. Co-products are those being manufactured or traded by a company may or may not come from the same manufacturing process. 4. 5 . Common joint cost is synonymous to joint cost. Joint products will always have a point of split-off. 6. Joint products arise when the processing of one product incidentally leads to the processing of one or more products. 7. Joint cost is incurred in the extraction of minerals (in the mining industry) and in catching fish (in the fishing industry). 8. When there are expected changes in subsequent processing of joint products, the allocation of joint cost is based on the equivalent production in the subsequent departments. 9. Net income remains the same when revenue is treated as other income, additional revenue, deduction from cost of goods sold, or as deduction from production cost of main product. 10. The allocation of joint costs to individual products is useful primarily for the purpose of determining whether to produce one of the joint products. 11. For purposes of allocating joint costs, the relative sales value at split off point is equal to sales price less a normal profit margin at the point of sale. 12. A by product in one that usually produces a small amount of revenue when compared to the main product revenue. 13. A by product may not bear a portion of the joint processing costs. 14. In a joint production, a by product is also described as products of low value recovered at the end of the production process. 15. In the reversal cost method, the manufacturing cost of the main product is reduced by the actual revenue from the by products. 16. Costs to be incurred after the split off point are most useful for assessing the desirability of further processing. 17. The best method of accounting for by-products is the net realizable value method. 18. When a by-product arises from the joint processing of main products and the market value method is used, the joint cost is allocated between the main products after deducting the market value of the by-product, at the point of separation. 19. Materials X, Y and Z ( in the ratio of 5:3:2) are used to produce one (1) ton of the main product, CD. They are processed in Depts. I, II,Ill and IV. From Dept. II, 80% goes to Dept. Ill The remainder goes to Dept. V to produce the by-product, BP. To produce one (1) ton of the main product, .5 ton of material X is required. 20. A company produced 10,000 units of product A and 5,000 units of product B and their selling prices are P100 and P1,000, respectively. Both of them are classified as main products
