Item6

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Item 6

Item 6 1.5 points

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 $72,000 after incurring additional processing costs of $21,400. The copper is sold for $122,000 after additional processing costs of $12,000, and the manganese yield sells for $76,000 but requires additional processing costs of $16,600. The joint costs of processing the raw ore, including the cost of mining, are $265,000 per batch.

Required:

Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.)