Blasto, Ic., 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 $63,000 after incurring additional processing costs of $25,200. The copper is sold for $101,000 after additional processing costs of $11,000, and the manganese yield sells for $68,000 but requires additional processing costs of $15,800. The joint costs of processing the raw ore, including the cost of mining, are $185,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.) Lead Copper Manganese Approximate sales value at split-off Percent of total sales values at split-off % % % Cost allocation
Blasto, Ic., 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 $63,000 after incurring additional processing costs of $25,200. The copper is sold for $101,000 after additional processing costs of $11,000, and the manganese yield sells for $68,000 but requires additional processing costs of $15,800. The joint costs of processing the raw ore, including the cost of mining, are $185,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.) Lead Copper Manganese Approximate sales value at split-off Percent of total sales values at split-off % % % Cost allocation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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 $63,000 after incurring additional processing costs of $25,200. The copper is sold for $101,000 after additional processing
costs of $11,000, and the manganese yield sells for $68,000 but requires additional processing costs of $15,800. The joint costs of
processing the raw ore, including the cost of mining, are $185,000 per batch.
Required:
Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.)
Lead
Copper
Manganese
Approximate sales value at split-off
Percent of total sales values at split-off
%
%
%
Cost allocation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4222dd2-cad5-4092-8617-5a5bda291fd4%2Fa6a48dd0-ad07-4bc1-b451-9a473bb382b0%2Fxyefp5_processed.png&w=3840&q=75)
Transcribed Image Text: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 $63,000 after incurring additional processing costs of $25,200. The copper is sold for $101,000 after additional processing
costs of $11,000, and the manganese yield sells for $68,000 but requires additional processing costs of $15,800. The joint costs of
processing the raw ore, including the cost of mining, are $185,000 per batch.
Required:
Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.)
Lead
Copper
Manganese
Approximate sales value at split-off
Percent of total sales values at split-off
%
%
%
Cost allocation
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