Products Metal-A Metal-B Metal-C Units sold...... 216,000 144,000 72,000 Units in ending inventory (Dec. 31) 72,000 -0- 48,000 Sales revenue $853,200 $576,000 $180,000 Process: Labor..... Mining Plant A Plant B $462,000 $390,000 $270,000 Manufacturing overhead... $378,000 $327,600 $126,000
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:
Douglass Minerals had no beginning inventories on hand at the beginning of the period. The company uses the net realizable value method to allocate joint costs.
Required
Compute the following:
a. The net realizable value of Metal-C for the period ended December 31.
b. The joint costs for the period ended December 31 to be allocated.
c. The cost of Metal-B sold for the period ended December 31.
d. The value of the ending inventory for Metal-C.
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