Question: Question 4 Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and

Question 4 Kirk 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 $178,800 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 Allocated Cost to Process Further Sales Value of Processed Product $300,100 400,200 800,800 Sales Value at Split-Off Point $211,000 299,200 455,600 Joint Costs Spock Uhura Sulu $39,700 59,800 79,300 110,800 85,200 250,000 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) Indicate whether each of the three joint products should be sold as is, or processed further Spock sold as is process further Sulu
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
