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 $75,000 after incurring additional processing costs of $12,000. The copper is sold for $115,000 after additional processing costs of $41,500, and the manganese yield sells for $95,000 but requires additional processing costs of $21,500. The joint costs of processing the raw ore, including the cost of mining, are $170,000 per batch. Required: Use the estimated net realizable value method to allocate the joint processing costs. (Do not round your intermediate calculations
cost allocation
Lead
copper
magnessium
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