Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the split-off point, the intermediate products cannot be sold without further processing. The lead from a typical batch sells for $74,000 after incurring additional processing costs of $20,000. The copper is sold for $127,000 after additional processing costs of $14,500, and the manganese yield sells for $77,000 but requires additional processing costs of $18,500. The joint costs of processing the raw ore, including the cost of mining, are $275,000 per batch.
Required:
Use the estimated net realizable value method to allocate the joint processing costs.
Lead | Copper | Manganese | Total | |
Selling price | 74000 | 127000 | 77000 | 278000 |
Less: Additional processing | 20000 | 14500 | 18500 | 53000 |
Approximate sales value at splitoff | 54000 | 112500 | 58500 | 225000 |
Percent of total sales values at splitoff | 24% | 50% | 26% | 100% |
Lead | Copper | Manganese | ||
Approximate sales value at splitoff | 54000 | 112500 | 58500 | |
Percent of total sales values at splitoff | 24% | 50% | 26% | |
Cost allocation | 66000 | 137500 | 71500 |
Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead,...
Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the split-off point, the intermediate products cannot be sold without further processing. The lead from a typical batch sells for $74,000 after incurring additional processing costs of $20,000. The copper is sold for $127,000 after additional processing costs of $14,500, and the manganese yield sells for $77,000 but requires additional processing costs of $18,500. The joint...
player.meducation.com Homepage - DSC-304-04-05 Production Connect -Class: Noland ACC 308 Fall 2019 MHE Reader a A 6 Euclid Corporation processes a patented chemical, P-I, and produces two outputs, P.11 and 12. In August, the costs to process PI are $144,000 for materials and $288.000 for conversion costs. P-11 has a sales value of $640,000 and P-12 has a sales value of $160,000. Required Using the net realizable value method, assign costs to P11 and P-12 for August. 11-44. Estimated Net...