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Exercise 12-11 Bridgeport Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and
Exercise 12-11 Bridgeport 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 $178,700 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. Allocated Joint Costs Cost to Process Further Sales Value of Processed Product Spock Sales Value at Split-Off Point $209,600 300,400 455,400 Uhura $39,400 59,700 79,600 $109,000 85,200 250,200 $299,700 400,500 799,700 Sulu 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 Sulu Incremental profit (loss) $ Indicate whether each of the three joint products should be sold as is, or processed further. Spock Uhura Sulu
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