The Production Process at Precision Paper Products

Production Process Overview

Precision Paper Products produces both paper towels and paper napkins. The production process begins with the receipt and pulping of raw timber. Once the timber is pulped, it is screened, rolled, and dried into large rolls of paper. At this point, half the paper is cut and folded into napkins, while the other half is cut, perforated, and rolled into towels.

Question

Based on this description, which of the costs listed below would NOT be classified as a joint cost?

a. The administrative costs associated with tracking and processing incoming timber shipments.
b. The materials costs for the various chemicals involved in the pulping process.
c. The direct labor costs associated with operation of the screening machine.
d. The maintenance costs associated with the napkin folding machine.

Answer

d. The maintenance costs associated with the napkin folding machine.

Explanation:

The cost that required one or more processors to produced a final product is known as joint cost

Here in the given question, the maintenance cost is not considered to be a joint cost as this cost is associated with the paper napkins

Also, the pulping, screening, rolling, etc are considered to be joint costs

Hence, the correct option is d.

Which part of the production process at Precision Paper Products involves the creation of paper towels? The creation of paper towels at Precision Paper Products involves cutting, perforating, and rolling the paper into towel form after the pulping and screening process.
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