The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy that is used to make platters and cups. TSC incurred $60,000 of materials cost and $64,000 of labor cost to produce the silver alloy. Platters are made first and the residual alloy is remixed into a lower grade silver plated material that is used to make the cups. Remixing costs amount to $7,000. The recent batch contained 14,000 platters and 6,000 cups. TSC sold the platters for $200,000 and the cups for $32,000. If relative market value is used to allocate the joint cost, what is the income earned for cups? Note: Round intermediate calculation to 2 decimal places. Multiple Choice О $(8,040). О $94,000. о $8,040. О $7,000.
The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy that is used to make platters and cups. TSC incurred $60,000 of materials cost and $64,000 of labor cost to produce the silver alloy. Platters are made first and the residual alloy is remixed into a lower grade silver plated material that is used to make the cups. Remixing costs amount to $7,000. The recent batch contained 14,000 platters and 6,000 cups. TSC sold the platters for $200,000 and the cups for $32,000. If relative market value is used to allocate the joint cost, what is the income earned for cups? Note: Round intermediate calculation to 2 decimal places. Multiple Choice О $(8,040). О $94,000. о $8,040. О $7,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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