Atkinson,Inc

question 47

Multiple Choice

Atkinson,Inc. ,manufactures products A,B,and C from a common process.Joint costs were $60,000.Additional information is as follows:
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:

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Dividends

Profits distributed to shareholders as a reward for their investment in the company.