Atkinson, Inc., manufactures products A, B, and C from a common process. Joint costs were $65,400. Additional information is as follows: If Processed Further Product Units Produced Sales Value at Split-Off Sales Value Additional Costs A 9,000 $ 58,000 $ 80,500 $ 6,000 B 4,900 42,875 55,125 7,350 C 2,450 29,400 36,750 9,800 16,350 $ 130,275 $ 172,375 $ 23,150 Assuming that joint production costs are allocated using the physical quantities method (units produced), what were the costs allocated to Product A? Multiple Choice $36,000. $39,000. $35,000. $33,000.
Atkinson, Inc., manufactures products A, B, and C from a common process. Joint costs were $65,400. Additional information is as follows: If Processed Further Product Units Produced Sales Value at Split-Off Sales Value Additional Costs A 9,000 $ 58,000 $ 80,500 $ 6,000 B 4,900 42,875 55,125 7,350 C 2,450 29,400 36,750 9,800 16,350 $ 130,275 $ 172,375 $ 23,150 Assuming that joint production costs are allocated using the physical quantities method (units produced), what were the costs allocated to Product A? Multiple Choice $36,000. $39,000. $35,000. $33,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Atkinson, Inc., manufactures products A, B, and C from a common process. Joint costs were $65,400. Additional information is as follows:
| If Processed Further | |||||||||||||
| Product | Units Produced |
Sales Value at Split-Off | Sales Value | Additional Costs | |||||||||
| A | 9,000 | $ | 58,000 | $ | 80,500 | $ | 6,000 | ||||||
| B | 4,900 | 42,875 | 55,125 | 7,350 | |||||||||
| C | 2,450 | 29,400 | 36,750 | 9,800 | |||||||||
| 16,350 | $ | 130,275 | $ | 172,375 | $ | 23,150 | |||||||
Assuming that joint production costs are allocated using the physical quantities method (units produced), what were the costs allocated to Product A?
Multiple Choice
-
$36,000.
-
$39,000.
-
$35,000.
-
$33,000.
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