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Blossom Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each
Blossom Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. Each of these products can be sold as is, or each can be processed further and sold for a higher price. The company incurs joint costs of $181,100 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value of Processed Product Sales Value at Split-Off Point Allocated Joint Costs Cost to Process Further Spock $211,000 $40,800 $110,900 $299,300 Uhura 299,500 59,800 84,500 399,700 Sulu 455,900 80,500 249,700 800,100 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Spock Uhura Incremental profit (loss) $ $ Indicate whether each of the three joint products should be sold as is, or processed further. Spock sold as is Uhura process further Sulu process further + $ Sulu
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