Jordan, Inc If Jordan Uses the Net Realizable Value Method, the Joint

question 61

Multiple Choice

Jordan, Inc. produces 2 products from a joint process costing $24,000. The results from the most recent period follow: $\begin{array}{lcccc}&&\text { Sales Value }&\text {Separable}&\text { Sales Value After }\\\text { Product }&\text { Tons }&\text {at Split-Off } &\text { Costs }& \text { Further Processing }\\ \text { Alpha-1 } & 800 & \$ 10,000 & \$ 12,000 & \$ 24,000 \\\text { Alpha-2 } & 400 & 8,000 & 4,000 & 20,000 \\\text { Waste } & 200 & -- & --- & --\end{array}$

If Jordan uses the net realizable value method, the joint costs allocated to Alpha-1 would be:

• A) $8,571
• B) $,9000
• C) $10,909
• D) $10,286

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