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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!