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
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 $40,000 after incurring additional processing costs of $12,000. The copper is sold for $80,000 after additional processing costs of $10,000, and the manganese yield sells for $60,000 but requires additional processing costs of $18,000. The joint costs of processing the raw ore, including the cost of mining, are $100,000 per batch Required: Use the estimated net realizable value method to allocate the joint processing costs. Approximate sales value at spill-off Persent of tutal sales values at spit-off Cost allocation Lead Copper 50 Manganese
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