Managerial Acct questions P3

25. At the split-off point, the production process stops and profitable products can be sold inventory becomes obsolete. the company recognizes profit by selling the product. st incurred can be separated into individual joint products. Which method of allocating joint costs is based on the proportional sales values at the split-off point? A. Proportional method Physical quantities method Relative sales value method Joint allocation method When making a decision to sell a joint product at the split-off point or process it further, which of 27 the following is not relevant? The amount of joint costs assigned The sales value at the split-off point The cost of further processing The sales value after further processing 28. Lana Tech produces three products, X, Y, and Z, from recycled paper. Budgeted data for next month follows: Units produced 800 2400 1.600 Sales value at split-off per unit $6 $15 $12 Additional processing costs per unit $1 $4 $5 Joint production costs per unit $2. $6 $4. $9 $20 $16 Sales value if processed further per unit The joint cost of the recycled paper is $110,000. Which of the products should be produced beyond the split-off point? One advantage of using an outside supplier is that 29 A. the adverse effect of a downturn in the business will be less severe it will enhance the manager's control over the production process. C. the component produced will always be of a better quality it will boost employee morale Which of the following is a disadvantage of using an outside supplier? 30 Employees may have to be laid off if production is outsourced The supplier assumes the risk of obsolete inventory The supplier may provide a cost savings due to increased efficiencies. D. The supplier may have better quality control