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

question 11

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 product costs are allocated using the net realizable value method, what were the total costs assigned to Product B?

• A) $26,000.
• B) $26,796.
• C) $27,000.
• D) $28,286.

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Definitions:

Significant Events

Major occurrences that have a profound effect on a company's operations and financial statements, such as mergers, acquisitions, or natural disasters.

Securities Accounting Standards (SASs)

A set of guidelines and rules for the accounting and reporting of transactions involving securities.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data.

Interim Financial Statements

Periodic financial statements prepared during the fiscal year, providing an update on a company's financial position and performance between annual reports.