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 $110,000 after incurring additional processing costs of $20,000. PX-20 can be sold for $170,000 after additional processing costs of $44,000, and the PX-30 sells for $220,000 but requires additional processing costs of $76,000. The joint costs of processing the Pryex, including the cost of mining, are $240,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs and fill out the following table. PX-10 PX-20 PX-30 Estimated Sales Value at split-off Percent of total sales value at split-off % % % Cost-allocation
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 $110,000 after incurring additional processing costs of $20,000. PX-20 can be sold for $170,000 after additional processing costs of $44,000, and the PX-30 sells for $220,000 but requires additional processing costs of $76,000. The joint costs of processing the Pryex, including the cost of mining, are $240,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs and fill out the following table. PX-10 PX-20 PX-30 Estimated Sales Value at split-off Percent of total sales value at split-off % % % Cost-allocation
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 $110,000 after incurring additional
Required:
Use the estimated net realizable value method to allocate the joint processing costs and fill out the following table.
| PX-10 | PX-20 | PX-30 | ||||
| Estimated Sales Value at split-off | ||||||
| Percent of total sales value at split-off | % | % | % | |||
| Cost-allocation |
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