Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $178,800 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value of Processed Product Sales Value at Split-Off Point Allocated Joint Costs Cost to Process Further Spock $209,300 $39,800 $110,100 $299,800 Uhura 300,900 60,000 85,000 399,700 Sulu 454,200 79,000 249,400 799,300 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Spock Incremental profit (loss) $ Uhura Sulu $ Indicate whether each of the three joint products should be sold as is, or processed further. Spock Uhura
Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $178,800 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value of Processed Product Sales Value at Split-Off Point Allocated Joint Costs Cost to Process Further Spock $209,300 $39,800 $110,100 $299,800 Uhura 300,900 60,000 85,000 399,700 Sulu 454,200 79,000 249,400 799,300 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Spock Incremental profit (loss) $ Uhura Sulu $ Indicate whether each of the three joint products should be sold as is, or processed further. Spock Uhura
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...
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