CH 9 Joint-Process Costing
CH 9 Joint-Process Costing
CH 9 Joint-Process Costing
Chapter 9
Joint processes
Process that converts a single input into multiple outputs
Common input
Intermediate product
Intermediate product
Final product
Intermediate product
Final product
Final product
Final product
Joint processes
Split-off point
Input splits into two or more products
Intermediate product
Joint processes
By-product Minor product resulting from the process Has some value, can be sold Scrap Not really a product Has possible minor value Recycling Waste No value May incur cost to dispose of it
Joint processes
Joint cost
Cost to operate the process
Further processing costs Net realizable value at split-off $ Percent of total net realizable value Allocation of joint costs Gross margin
Waste
No sales value
Disposal cost is overhead or part of joint costs