Exercise 20-11 (Part Level Submission)

Chen Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $180,466 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Determine the incremental profit or loss that each of the three joint products.

		Sales Value at Split-Off Point			Allocated Joint Costs			Cost to Process Further			Sales Value of Processed Product
Larco			$220,000			$40,091			$110,521			$299,671
Marco			299,049			60,320			85,323			399,783
Narco			405,346			80,055			249,413			799,349