Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing. Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related data for the period ended December 31: Process: Mining Plant A Plant B Labor $ 470,000 $ 406,000 $ 278,000 Manufacturing overhead $ 386,000 $ 338,800 $ 134,000 Products Metal-A Metal-B Metal-C Units sold 224,000 176,000 76,000 Units in ending inventory (December 31) 76,000 0 64,000 Sales revenue $ 1,120,000 $ 584,000 $ 190,000 Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net realizable value method to allocate joint costs. Required: Compute the following: The net realizable value of Metal-C for the period ended December 31. The joint costs for the period ended December 31 to be allocated. The cost of Metal-B sold for the period ended December 31. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. The value of the ending inventory for Metal-C. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing. Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related data for the period ended December 31: Process: Mining Plant A Plant B Labor $ 470,000 $ 406,000 $ 278,000 Manufacturing overhead $ 386,000 $ 338,800 $ 134,000 Products Metal-A Metal-B Metal-C Units sold 224,000 176,000 76,000 Units in ending inventory (December 31) 76,000 0 64,000 Sales revenue $ 1,120,000 $ 584,000 $ 190,000 Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net realizable value method to allocate joint costs. Required: Compute the following: The net realizable value of Metal-C for the period ended December 31. The joint costs for the period ended December 31 to be allocated. The cost of Metal-B sold for the period ended December 31. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. The value of the ending inventory for Metal-C. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Douglass Minerals mines ore and then processes it into other products. At the end of the mining process, the ore splits off into three products: Metal-A, Metal-B, and Metal-C. Douglass sells Metal-C at the split-off point, with no further processing. Metal-A is processed in Plant A, and Metal-B is processed in Plant B. The following is a summary of costs and other related data for the period ended December 31:
| Process: | Mining | Plant A | Plant B |
|---|---|---|---|
| Labor | $ 470,000 | $ 406,000 | $ 278,000 |
| Manufacturing |
$ 386,000 | $ 338,800 | $ 134,000 |
| Products | Metal-A | Metal-B | Metal-C |
|---|---|---|---|
| Units sold | 224,000 | 176,000 | 76,000 |
| Units in ending inventory (December 31) | 76,000 | 0 | 64,000 |
| Sales revenue | $ 1,120,000 | $ 584,000 | $ 190,000 |
Douglass Minerals had no beginning inventories on hand at the beginning of the period. Douglass Minerals uses the net realizable value method to allocate joint costs.
Required:
Compute the following:
-
The net realizable value of Metal-C for the period ended December 31.
-
The joint costs for the period ended December 31 to be allocated.
-
The cost of Metal-B sold for the period ended December 31.
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
-
The value of the ending inventory for Metal-C.
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar.
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