Question: Saint John Mining operates several facilities. At one, a typical batch of an ore, Pryex, run through the processing plant yields three products: PX-10,

Saint John Mining operates several facilities. At one, a typical batch of

Saint John Mining operates several facilities. At one, a typical batch of an ore, Pryex, run through the processing plant yields three products: PX-10, PX-20, and PX-30. At the split-off point, the intermediate products cannot be sold without further processing. A typical batch of PX-10 sells for $115,000 after incurring additional processing costs of $30,000. PX-20 can be sold for $175,000 after additional processing costs of $54,000, and the PX-30 sells for $230,000 but requires additional processing costs of $86,000. The joint costs of processing the Pryex, Including the cost of mining, are $250,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. Note: Do not round intermediate calculations. Enter percentage answers rounded to 2 decimal places and other final answers to the nearest whole dollar amounts. Estimated sales value at spill-off Percent of total sales values at split-off Cost allocation PX-10 % PX-20 PX-30

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!