cost allocation joint products and byproducts

《cost allocation joint products and byproducts》由会员上传分享，免费在线阅读，更多相关内容在工程资料-天天文库。

1、16CostAllocation:JointProductsandByproductsLearningObjectivesManycompanies,suchaspetroleumrefiners,produceandselltwoormoreproductssimultaneously.1.Identifythesplitoffpointinajoint-Similarly,somecompanies,suchashealthcareproviders,sellorcostsituationanddistinguishjointprovidemultipleservices.Theq

2、uestionis,“Howshouldtheseproductsfrombyproductscompaniesallocatecoststo‘joint’productsandservices?”2.Explainwhyjointcostsareallo-Knowinghowtoallocatejointproductcostsisn’tsomethingthatcatedtoindividualproductsonlycompaniesneedtounderstand.It’ssomethingthatfarmers3.Allocatejointcostsusingfourhavet

3、odealwith,too,especiallywhenitcomestothelucrativemethodsproductionofcorntomakebillionsofgallonsofethanolfuel.4.ExplainwhenthesalesvalueatsplitoffmethodispreferredwhenallocatingjointcostsJointCostAllocationandtheProductionof5.Explainwhyjointcostsareirrele-EthanolFuel1vantinasell-or-process-further

4、decisionTheincreasedglobaldemandforoilhasdrivenpriceshigherand6.Accountforbyproductsusingforcedcountriestolookforenvironmentally-sustainablealternatives.IntwomethodstheUnitedStates,thelargestsourceofalternativefuelcomesfromcorn-basedethanol.In2009,theU.S.produced10.75billiongallonsofethanol,or55%

5、oftheworld’sproduction,upfrom1.7billiongallonsperyearin2001.Producingethanolrequiresasignificantamountofcorn.In2011,theU.S.DepartmentofAgriculturepredictsthatmorethanone-thirdofU.S.domesticcornproductionwillbeusedtocreateethanolfuel.Butnotallofthatcornwindsupintheethanolthatgetsblendedintogasolin

6、eandsoldatservicestation.Mostbiotechnologyoperations,suchasmakingethanol,producetwoormoreproducts.Whiledistillingcornintoethanol,cellmassfromtheprocess—suchasantibioticandyeastfermentations—separatesfromtheliquidandbecomesaseparateproduct,whichisoftensoldasanimalfeed.Thisseparationpoint,whereoutp

7、utsbecomedistinctlyidentifiable,iscalledthesplitoffpoint.Similarly,theresiduesfromcornprocessingplantscreatesecondaryproductsincludingdistillers’driedgrainsandgluten.Accountantsrefertothesesecondaryproductsasbyproducts