Joint Products and By Products | Financial Reporting Decisions| US CMA Part 1| US CMA course

US CMA Exam Part 1
Multiple products
From common process/processes
Common joint costs are incurred till split-off point
Such joint costs need to be suitably allocated
Joint products have significant market values
Joint costs need to be suitably allocated
Inventory needs to valued with a reasonable amount of accuracy
Costs incurred after split off ----- further processing costs can be easily identified
E.g. Processing milk to get butter, cheese & cream
Low-value products
Produced along with the main product
E.g. Molasses is a by-product of refining sugar
Sawdust is a by-product of the timber business

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