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Athens, Inc., manufactures argon, xon, and zeon from a joint process. Each gas can be liquified and sold for a higher price. Data on the
Athens, Inc., manufactures argon, xon, and zeon from a joint process. Each gas can be liquified and sold for a higher price. Data on the process are as follows: |
Required: |
Determine the value of the missed item. (Do not round intermediate calculations.) |
Product | Argon | Xon | Zeon | Total |
Units Produced | 15800 | 7500 | 3500 | 26800 |
Joint Costs | 62500 | ? | ? | 12500 |
Sales value at splitt off | ? | ? | 30300 | 202000 |
Additional costs to liquify | 13800 | 9600 | 5500 | 28900 |
Sales value if liquified | 130000 | 61000 | 35000 | 226000 |
Joint costs for Argon ($62,500) -This amount is the portion of the total joint cost of $125,000 that had been allocated to argon. |
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