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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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