What are the two primary methods used to allocate joint cost
Question:
1. What are the two primary methods used to allocate joint cost to joint products? Compare the advantages and disadvantages of each.
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Allocate the joint cost based on the units of output, weight, and approximated net realizable values at split-off.
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Allocate the joint cost using weight as the basis. Allocate the joint cost using sales value as the basis.
What are the two primary methods used to allocate joint cost to joint products? Compare the advantages and disadvantages of each.
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