Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-0. Both products require further processing before they be can be sold. A batch of ALT-1 can be sold for $155.000 after processing costs of $50,000. A batch of ALT-2 can be sold for $242.000 after further processing. The cost of ALT-0 is $200,000 for a batch. Using the estimated net realizable value method, a joint cost of $120,000 was allocated to ALT-2 for a batch. Required: Compute the separable processing cost for a batch of ALT-2 Note: Do not round intermediate calculations.
Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-0. Both products require further processing before they be can be sold. A batch of ALT-1 can be sold for $155.000 after processing costs of $50,000. A batch of ALT-2 can be sold for $242.000 after further processing. The cost of ALT-0 is $200,000 for a batch. Using the estimated net realizable value method, a joint cost of $120,000 was allocated to ALT-2 for a batch. Required: Compute the separable processing cost for a batch of ALT-2 Note: Do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-0. Both products require
further processing before they be can be sold. A batch of ALT-1 can be sold for $155.000 after processing costs of $50.000. A batch of
ALT-2 can be sold for $242,000 after further processing. The cost of ALT-0 is $200,000 for a batch. Using the estimated net realizable
value method, a joint cost of $120,000 was allocated to ALT-2 for a batch.
Required:
Compute the separable processing cost for a batch of ALT-2.
Note: Do not round intermediate calculations.
Processing cast
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