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Actual sales values at the split-off point for joint products Y and Z are not known. For purposes of allocating joint costs to products Y and Z, the relative sales value at split-off method is used. An increase in the costs beyond split-off occurs for product Z, while those of product Y remain constant. If the selling prices of finished products Y and Z remain constant, the percentage of the total joint costs allocated to product Y and product Z would

a. Decrease for product Y and increase for product Z

b. Decrease for product Y and product Z

c. Increase for product Y and product Z

d. Increase for product Y and decrease for product Z

Accounting Basics, Accounting

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  • Reference No.:- M947695

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