True or False When calculating Joint Product Costs you can use the weighted average method if the products are not broken down any further

Accounting Nov 26, 2020

True or False When calculating Joint Product Costs you can use the weighted average method if the products are not broken down any further.

Expert Solution

Answer: True

The weighted average method uses the weight factors to include such diverse elements as amount of material used, difficulty to manufacture, time consumed, the difference in type of labor used, and size of unit.

The canning industry uses weight factors to distinguish between can sizes or quality of product. The weighted average method allocates relatively more of the joint cost to the high-grade products because they represent more desirable and profitable products.

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