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 $54,000 of materials cost and $58,000 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 $5,500. The recent batch contained 11,000 platters and 4,500 cups. TSC sold the platters for $170,000 and the cups for $26,000. 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 $(5,680). $73,100. $5,680. $5,500.
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 $54,000 of materials cost and $58,000 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 $5,500. The recent batch contained 11,000 platters and 4,500 cups. TSC sold the platters for $170,000 and the cups for $26,000. 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 $(5,680). $73,100. $5,680. $5,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $54,000 of materials cost and $58,000 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 $5,500. The recent batch contained 11,000 platters and 4,500 cups.
TSC sold the platters for $170,000 and the cups for $26,000. 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
$(5,680).
$73,100.
$5,680.
$5,500.
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