process. Using the weighted average method, the cost per equivalent
unit for materials is
59. Which of the following is not a basic approach to allocating costs
for costing inventory in joint-cost situations?
60. Kode Co. manufactures a major product that gives rise to a by-
product called May. May's only separable cost is a $1 selling cost when
a unit is sold for $4. Kode accounts for May's sales by deducting the
$3 net amount from the cost of goods sold of the major product. There
are no inventories. If Kode were to change its method of accounting
for May from a by-product to a joint product, what would be the effect
on Kode's overall gross margin?
61. Mighty, Inc. processes chickens for distribution to major grocery
chains. The two major products resulting from the production process
are white breast meat and legs. Joint costs of $600,000 are incurred
during standard production runs each month, which produce a total of
100,000 pounds of white breast meat and 50,000 pounds of legs. Each
pound of white breast meat sells for $2 and each pound of legs sells for
$1. If there are no further processing costs incurred after the split-off
point, what amount of the joint costs would be allocated t