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Exercise 7-11 Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and
Exercise 7-11 Kirk 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 $180,000 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 at Split-Off Point $210,800 299,500 454,900 Allocated Sales Value of Processed Product $299,200 399,600 800,600 Cost to Process Further $110,400 Joint Costs Spock Uhura Sulu $39,400 60,400 80,200 85,100 249,900 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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