Question

Which of the following costs of a joint process would be allocated to the joint products?

a.) labor and overhead only

b.) materials and labor only

c.) materials, labor, and overhead

d.) prime costs less by product values

e.) conversion costs less by product values

Answer 1

 Joint Costs are Manufacturing Cost Incurred on joint production process which takes common inputs for Production up to the initial split off Point.

 Joint Costs are Total of Direct Material, Direct Labor and overhead Incurred up to the split off Point.

 Prime Costs include Direct Material and Direct Labor Costs only to doesn't include overhead cost so these are not treated as joint Costs.

 Conversion Cost includes Direct Material and Manufacturing overhead it doesn't include Direct Labor.

 From the above summary we can conclude that joint Costs are Direct

 Material, Direct Labor and Overhead only

 OPTION C IS CORRECT.