Allocation of joint costs in proportion to the value of the output of the sales which were produced in the process during at the split-off point is a preferred approach.
<h3>What are joint costs?</h3>
Joint costs involve the benefit of more than one product, and the separation of the costs of such products is impossible as the benefits related thereto are also joint.
One of the best examples of joint costs is in a condition when a cattle-owner feeds both the flock of sheep and cattle of cows at the same time. One cannot differentiate between the separate costs allocated.
Hence, it may be said that value basis is the most appropriate method for the purpose of allocation of joint costs being incurred in the proportion as it may be.
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Answer:
The correct answer is option D.
Explanation:
External economies of scale can be defined as the situation when the average cost of production is reduced due to growth of industry as a whole. It can also be referred as the external benefit of expansion of the industry.
It is generally associated with a perfectly competitive industry. While internal economies of scale is generally associated with imperfectly competitive markets.
Answer:
Bad debt expense 6,500 debit
Allowance for uncollectible account 6,500 credit
Explanation:
"determined that there should be an allowance for uncollectible accounts of $5,150 at December 31, 2022."
We need to recognize as much bad debt as it need to leave the allowance balance on our expected uncollectible account.
balance for allowance before adjsutment:
beginning - write-off = unadjusted allowance
1,250 - 2,600 = -1,350
expected balance - unadjusted balance = adjustment
5,150 - (-1,350) = 6,500
Bad debt expense 6,500 debit
Allowance for uncollectible account 6,500 credit
