Q1. Net realizable value at the split off point is used to allocate

1. Costs after split-off point (no); Incurred Joint Costs (no)

2. Costs after split-off point (no); Incurred Joint Costs (yes)

3. Costs after split-off point (yes); Incurred Joint Costs (no)

4. Costs after split-off point (Yes); Incurred Joint Costs (yes)

A. 1

B. 2

C. 3

D. 4

Q2. The Freed Company produces three products, X, Y, and Z from a single raw material input. Product Y can besold at the aplit off point for total revenues of $50,000 or it can be processed further at a total cost of $16,000 and then sold for $68,000. Product Y:

A. should be sold at the split off point, rather than processed further

B. would increase the company's overall net income by $18,000 if processed further and then sold

C. would increase the company's overall net income by $68,000 if processed further and then sold

D. would increase the company's overall net income by $2,000 if processed further and then sold