Joint Costs and Further Processing Cost

  • Creator
    Topic
  • August 22, 2017 at 2:42 am #1609559
    AMERICANDREAM
    Participant

    In the cost accounting section of BEC, the concept of joint costs and further processing cost are included. For example, “Joint costs attributable to Item A were $100,000, and costs of processing Item A further were $50,000”.

    My question is, how are these costs classified on the income statement? Are they included in COGS, or somewhere in the operating expense section? My guess is that it’s part of COGS, but I just wanted to make sure.

    Thank you!

    AUD - 92
    BEC - NINJA in Training
    FAR - 90
    REG - 88
    If you think you failed, you passed.
Viewing 3 replies - 1 through 3 (of 3 total)
  • Author
    Replies
  • August 22, 2017 at 12:52 pm #1610021
    AMERICANDREAM
    Participant

    anyone?

    AUD - 92
    BEC - NINJA in Training
    FAR - 90
    REG - 88
    If you think you failed, you passed.
    August 28, 2017 at 12:53 pm #1616990
    AMERICANDREAM
    Participant

    bump

    AUD - 92
    BEC - NINJA in Training
    FAR - 90
    REG - 88
    If you think you failed, you passed.
    August 28, 2017 at 1:07 pm #1616999
    Anonymous
    Inactive

    Joint costs generally debit COGS and credit Inventory once the item is sold.

  • Author
    Replies
Viewing 3 replies - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.