Atkinson, Inc $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

question 106

Multiple Choice

Atkinson, Inc., manufactures products A, B, and C from a common process. Joint costs were $60,000. Additional information is as follows:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { If Processed Further }$
$\begin{array}{cr}&\text { Units } & \text { Sales Value at Split- } & &\text { Additional }\\\text { Product } & \text { Produced } & \text { Off } & \text { Sales Value } & \text { Costs } \\\text { A } & 6,000 &40,000 & 55,000 & \$ 4,000 \\\text { B } & 4,000 &35,000& 45,000 & 6,000\\\text { C } & 2,000 &25.000 & 30.000 &8,000\\& 12,000&\$ 100,000&\$ 130,000&\$ 18,000\end{array}$
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Assuming that joint production costs are allocated using the physical quantities method (units produced) , what were the costs allocated to Product A?

• A) $27,000.
• B) $29,000.
• C) $33,000.
• D) $30,000.

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Definitions:

Continental Crust

The thick part of the Earth's crust that forms the large landmasses, typically composed of less dense rocks like granite.

Continental Slope

The steep slope extending from the outer edge of the continental shelf down to the continental rise or the ocean floor.

Salt Structures

Geologic formations created by the movement and deformation of salt within the earth's crust.

Continental Rifting

Continental rifting is a geological process in which a continent stretches and splits apart, leading to the formation of new ocean basins and rift valleys.