Use the Following Information for the Next 5 Questions

question 103

Multiple Choice

Use the following information for the next 5 questions.
Jordan, Inc. produces 2 products from a joint process costing $24,000. The results from the most recent period follow:
-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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Definitions:

Fixed Overhead

The set of expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Product Costs

Costs directly associated with the creation of a product, including materials, labor, and manufacturing overhead.

GAAP

Generally Accepted Accounting Principles, a set of standards and procedures for financial reporting used in the United States.

Variable Costing

An accounting method that only includes variable costs in product costing and decision-making.