1.

When two products are produced during a common process, what is the factor that determines whether the products are joint products or one principal product and a by-product?

-relative total sales value of the products

-amount of additional work expended in the production of each product

-management policy

-relative size of the products

2. A company has sales of $40,000 and COGS of $21,000 on their primary product during January. A by-product, with a net sales value of $800, is produced during January as well. Sales of the by-product totaled $400 in revenue for January. If a production method (net realizable value option) of accounting for by-products is used, the gross profit for the month would equal __________.

3. A company has sales of $40,000 and COGS of $21,000 on their primary product during January. A by-product, with a net sales value of $800, is produced during January as well. Sales of the by-product totaled $400 in revenue for January. If a sales method (manufacturing cost recovery option) of accounting for by-products is used, the gross profit for the month would equal __________.