Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 16 - Cost Allocation: Joint Products and Byproducts - Assignment Material - Questions - Page 652: 16-1

Answer

1. Oil Refining Industry: In the oil refining industry, joint costs are incurred during the process of refining crude oil. At the splitoff point, various individual products are obtained, including gasoline, diesel fuel, jet fuel, and lubricating oil. 2. Agricultural Processing Industry: In the agricultural processing industry, joint costs are incurred during the processing of raw agricultural products. At the splitoff point, products such as wheat, bran, and germ are obtained from processing wheat, and these products are used for various purposes.

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