Bonita Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or they can be processed further and sold for a higher price. The company incurs joint costs of $179,900 to process one batch of the raw material that produces the three joint products. The following cost and selling price information is available for one batch of each product: Sarco Barco Larco Sarco Barco Selling Price at Split-Off Point Larco $199,400 299,600 471,500 Incremental Profit/Loss Determine whether each of the three joint products should be sold as is, or processed further. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) $ $ Allocated Joint Costs $41,000 59,600 79,300 $ Cost to Process Further Amount $97,300 89,500 250,900 Selling Price of Processed Product $300,900 364,200 799,500 Decision Sold as is

Bonita Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or they can be processed further and sold for a higher price. The company incurs joint costs of $179,900 to process one batch of the raw material that produces the three joint products. The following cost and selling price information is available for one batch of each product: Sarco Barco Larco Sarco Barco Selling Price at Split-Off Point Larco $199,400 299,600 471,500 Incremental Profit/Loss Determine whether each of the three joint products should be sold as is, or processed further. (Enter loss with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) $ $ Allocated Joint Costs $41,000 59,600 79,300 $ Cost to Process Further Amount $97,300 89,500 250,900 Selling Price of Processed Product $300,900 364,200 799,500 Decision Sold as is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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