Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material,...

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Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-O. Both products require further processing before they be can be sold. A batch of ALT-1 can be sold for $151,000 after processing costs of $34,000. A batch of ALT-2 can be sold for $240,400 after further processing. The cost of ALT-O is $200,000 for a batch. Using the estimated net realizable value method, a joint cost of $120,000 was allocated to ALT-2 for a batch. Required: Compute the separable processing cost for a batch of ALT-2. Note: Do not round intermediate calculations. X Answer is complete but not entirely correct. Processing cost $ 120,400 x Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-O. Both products require further processing before they be can be sold. A batch of ALT-1 can be sold for $151,000 after processing costs of $34,000. A batch of ALT-2 can be sold for $240,400 after further processing. The cost of ALT-O is $200,000 for a batch. Using the estimated net realizable value method, a joint cost of $120,000 was allocated to ALT-2 for a batch. Required: Compute the separable processing cost for a batch of ALT-2. Note: Do not round intermediate calculations. X Answer is complete but not entirely correct. Processing cost $ 120,400 x

Answer rating: 100% (QA)

SOLUTION To calculate the separable processing cost for a batch of ALT2 we first need to calculate t... View the full answer