Explore BrainMass

Explore BrainMass

    allocating joint costs of products

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Joint costs should not be allocated to individual products for decision purposes. For what purposes are such costs allocated to products? Briefly explain each of the two conventional ways of allocating joint costs of products.

    © BrainMass Inc. brainmass.com June 4, 2020, 1:02 am ad1c9bdddf

    Solution Preview

    Joint costs are allocated to get the inventory valuation for financial statement purposes.

    The two conventional methods of assigning joint costs to products are physical units (which require a common ...

    Solution Summary

    The solution provides a discussion for everyday language suitable for novice. Two conventional ways of allocating joint costs of products are determined.