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Examveda

Value of sales considers sales value at split off method is of

A. entire direct material of accounting period

B. entire production of accounting period

C. portion of production of accounting period

D. entire indirect material of accounting period

Answer: Option B

Solution(By Examveda Team)

Value of sales considers sales value at split off method is of entire production of accounting period. The split-off point is the point at which joint production stops and processing for separate products begins. The relative-sales-value method allocates costs based on the relative sales value of each resulting from a joint-production process.

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