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Required: Use the estimated net realizable value method to allocate the joint processing costs. Note: Do not round intermediate calculations. Enter percentage answers rounded to 2 decimal places and other final answers to the nearest whole dollar amounts.

Required: Use the estimated net realizable value method to allocate the joint processing costs. Note: Do not round intermediate calculations. Enter percentage answers rounded to 2 decimal places and other final answers to the nearest whole dollar amounts.

FINANCIAL ACCOUNTING
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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Saint John Mining operates several facilities. At one, a typical batch of an ore, Pryex, run through the processing plant yields three products: PX-10, PX-20, and PX-30. At the split-off point, the intermediate products cannot be sold without further processing. A typical batch of PX-10 sells for $111,000 after incurring additional processing costs of $22,000. PX-20 can be sold for $171,000 after additional processing costs of $46,000, and the PX-30 sells for $222,000 but requires additional processing costs of $78,000. The joint costs of processing the Pryex, including the cost of mining, are $242,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. Note: Do not round intermediate calculations. Enter percentage answers rounded to 2 decimal places and other final answers to the nearest whole dollar amounts. Estimated sales value at split-off Percent of total sales values at split-off Cost allocation PX-10 % PX-20 % PX-30 %
Transcribed Image Text:Saint John Mining operates several facilities. At one, a typical batch of an ore, Pryex, run through the processing plant yields three products: PX-10, PX-20, and PX-30. At the split-off point, the intermediate products cannot be sold without further processing. A typical batch of PX-10 sells for $111,000 after incurring additional processing costs of $22,000. PX-20 can be sold for $171,000 after additional processing costs of $46,000, and the PX-30 sells for $222,000 but requires additional processing costs of $78,000. The joint costs of processing the Pryex, including the cost of mining, are $242,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. Note: Do not round intermediate calculations. Enter percentage answers rounded to 2 decimal places and other final answers to the nearest whole dollar amounts. Estimated sales value at split-off Percent of total sales values at split-off Cost allocation PX-10 % PX-20 % PX-30 %
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