Question
Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the
Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the split-off point, the intermediate products cannot be sold without further processing. The lead from a typical batch sells for $110,000 after incurring additional processing costs of $40,000. The copper is sold for $150,000 after additional processing costs of $24,000, and the manganese yield sells for $130,000 but requires additional processing costs of $46,000. The joint costs of processing the raw ore, including the cost of mining, are $240,000 per batch. |
Required: |
Use the estimated net realizable value method to allocate the joint processing costs. (Do not round your intermediate calculations.) Lead Copper Manganese |
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