Question
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
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 $178,600 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 atSplit-Off Point AllocatedJoint Costs Cost to Process Further Sales Value ofProcessed Product
Spock $209,500 $39,200 $110,100 $300,900
Uhura 299,900 59,100 85,100 400,900
Sulu 454,000 80,300 249,500 800,700
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.
Should Spockbe sold as is or process further?
Should Uhura be sold as is or process further?
Should Sulu be sold as is or process further?
Please show work.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started