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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 $64,000 after incurring additional processing costs of $22,000. The copper is sold for $114,000 after additional processing costs of $14,000, and the manganese yield sells for $72,000 but requires additional processing costs of $14,000. The joint costs of processing the raw ore, including the cost of mining, are $225,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.) Lead Copper Manganese Approximate sales value at split-off Percent of total sales values at split-off Cost allocation
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