Question: Ivanhoe Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each
Ivanhoe Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. 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 $178,700 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.
| Sales Value at Split-Off Point | Allocated Joint Costs | Cost to Process Further | Sales Value of Processed Product | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Spock | $209,600 | $39,400 | $109,000 | $299,700 | ||||||||||
| Uhura | 300,400 | 59,700 | 85,200 | 400,500 | ||||||||||
| Sulu | 455,400 | 79,600 | 250,200 | 799,700 | ||||||||||
Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Spock | Uhura | Sulu | |||||
|---|---|---|---|---|---|---|---|
| Incremental profit (loss) | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
Indicate whether each of the three joint products should be sold as is, or processed further.
| Spock | select an option sold as isprocess further | ||
|---|---|---|---|
| Uhura | select an option sold as isprocess further | ||
| Sulu | select an option process furthersold as is |
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