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

			If Further Processed
Product	units Produced		Sales Value in the Division				Sales Value				Additional costs
A	6,000		$	40,000			$	55,000			$	4,000
B	4,000			35,000				45,000				6,000
C	2,000			25,000
	12,000		$	100,000			$	100,000			$	10,000

Required: (Display your work in a separate document and submit it to the combo box provided on Blackboard)

• Assuming joint product costs are allocated using the Estimated Net Realizable Value Method , what were the costs allocated to each Product?

A. Product A____________________ b. Product B______________________ c. Product C___________________________________

• Suppose C is a by-product and Atkinson uses the cost reduction method to account for the by-product cost. If the joint costs are allocated according to the Estimated Net Realizable value method, how much of the joint costs are allocated to each product?

D. Product A__________________ e. Product B______________________

Answer rating: 100% (QA)

a Product A Total Estimated Net Realizable Value ENRV 40000 55000 25000 120000 Allocation to Product ... View the full answer