Sales Value at Splitoff Example
成本与管理会计亨格瑞第13版英文版 CA16
Physical-Measure Method
Allocates joint costs to joint products on the basis of the relative weight, volume, or other physical measure at the splitoff point of total production of the products p455(577)
成本与管理会计亨格瑞第13版英文版 CA16
Physical-Measure Example p456(578)
成本与管理会计亨格瑞第13版英文版 CA16
Physical-Measure Example
成本与管理会计亨格瑞第13版英文版 CA16
Net Realizable Value Method
to sell immediately or process further and sell later
Joint Costs are sunk Separable Costs need to be evaluated for relevance individually
成本与管理会计亨格瑞第13版英文版 CA16
成本与管理会计亨格瑞第13版英文版 CA16
Joint Process Flowchart
成本与管理会计亨格瑞第13版英文版 CA16
Reasons for Allocating Joint Costs
Determination of inventoriable costs and cost of goods sold for external financial reporting and income tax determination. Determination of inventoriable costs and cost of goods sold for internal reporting purposes such as division profitability analysis. Cost reimbursement when a company has costreimbursement contracts as with a governmental agency.
成本与管理会计亨格瑞第13版英文版 CA16
Example p454(576)
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Illustration Overview
成本与管理会计亨格瑞第13版英文版 CA16
Sales Value at Splitoff Example
成本与管理会计亨格瑞第13版英文版 CA16
Sales value at splitoff Net Realizable Value (NRV) Constant Gross-Margin percentage NRV
成本与管理会计亨格瑞第13版英文版 CA16
Sales Value at Splitoff Method
Uses the sales value of the entire production of the accounting period to calculate allocation percentage Ignores inventories
Value can be high or low
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Terminology ，conts.
Main Product – output of a joint production process that yields one product with a high sales value compared to the sales values of the other outputs.P452(574) Joint Products – outputs of a joint production process that yields two or more products with a high sales value compared to the sales values of any other outputs Byproducts – outputs of a joint production process that have low sales values compare to the sales values of the other outputs
成本与管理会计亨格瑞 第13版英文版CA16
2020/11/10
成本与管理会计亨格瑞第13版英文版 CA16
Learning objectives
Identify the splitoff point in a joint-cost situation Distinguish joint products from byproducts Explain why joint costs are allocated to individual products Allocate joint costs using four methods Explain why the sales value at splitoff method is preferred
成本与管理会计亨格瑞第13版英文版 CA16
Example of Joint Cost stituation
成本与管理会计亨格瑞第13版英文版 CA16
Chart of Joint Cost Terminology
Separable Costs
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Terminology，conts.
Joint Cost Terminology
Joint Costs – costs of a single production process that yields multiple products simultaneously Splitoff Point – the place in a joint production process where two or more products become separately identifiable Separable Costs – all costs incurred beyond the splitoff point that are assignable to each of the nowidentifiable specific products
Byproducts
Two methods for accounting for byproducts
Production Method – recognizes byproduct inventory as it is created, and sales and costs at the time of sale Sales Method – recognizes no byproduct inventory, and recognizes only sales at the time of sales: byproduct costs are not tracked separately
成本与管理会计亨格瑞第13版英文版 CA16
Joint Cost Allocation Methods
Physical Measures – allocate using tangible attributes of the products, such as pounds, gallons, barrels, etc. Market-Based – allocate using market-derived data (dollars):
when allocating joint costs Explain why joint costs are irrelevant in a sell-or-process-
further decision Account for byproducts using two methods
成本与管理会计亨格瑞第13版英文版 CA16
成本与管理会计亨格瑞第13版英文版 CA16
ห้องสมุดไป่ตู้
NRV Example p457(579)
成本与管理会计亨格瑞第13版英文版 CA16
NRV Example，conts.
成本与管理会计亨格瑞第13版英文版 CA16
NRV Example ，conts.
成本与管理会计亨格瑞第13版英文版 CA16
NRV Example ，conts.
Categories of Joint Process Outputs:
Outputs with a positive sales value Outputs with a zero sales value
Product – any output with a positive sales value, or an output that enables a firm to avoid incurring costs
成本与管理会计亨格瑞第13版英文版 CA16
成本与管理会计亨格瑞第13版英文版 CA16
Constant Gross Margin NRV Example
成本与管理会计亨格瑞第13版英文版 CA16
Method Selection
If selling price at splitoff is available, use the Sales Value at Splitoff Method.p459(581) If selling price at splitoff is not available, use the NRV Method If simplicity is the primary consideration, Physical-Measures Method or the Constant GrossMargin Method could be used Despite this, some firms choose not to allocate joint costs at all