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Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu.
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 $180,300 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 $209,700 $39,300 $109,600 $299,500 Uhura 299,700 60,000 84,500 399,400 Sulu 455,000 81,000 249,000 801,000 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 Incremental profit (loss) $ Uhura Indicate whether each of the three joint products should be sold as is, or processed further. Spock Uhura Sulu $ Sulu
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