[AMERICANDREAM]

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!

[AMERICANDREAM]

anyone?

[AMERICANDREAM]

bump

[Anonymous]

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

[Author]

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