Joint and By-product costing

A single process that yields various outputs simultaneously.

 A poultry processing fancility can generate whole chickens, chicken parts, ground chicken, and
fertilizer usin single input.
 refining of crude oil-gasoline, motor oil, heating oil, and kerosene.

Joint Process- A process where one product cannot be manufactured without producing others.

Joint cost-cost incurred for material, labor, and overhead during a joint process. it is allocated only to
primary products using either physical or monetary measure.

Additional separate cost- assignable to specific products, may be incurred in developing further the joint
products.

Joint poducts-Primary output of joint processs

Split-off point -the point at which joint products are first identifiable as individual products.

By Products and scrap- incidental outputs of a joint process. Both are salable, with by-products having a
higher sales value than scrap.

Waste-final residual output from a joint process which has no sales.