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Master Company processes a ra Magna can be sold for $50 a batch of Magna and Delta processes a raw material that produces two joint
Master Company processes a ra Magna can be sold for $50 a batch of Magna and Delta processes a raw material that produces two joint products - Magna and Delta. At split-off cold for $5.00 per pound and Delta can be sold for $7.00 per pound. It costs 590 to produce pa and Delta. Each batch contains 14 pounds of Magna and 6 pounds of Delta Required a) Allocate the joint cost of pre the joint cost of producing Magna and Delta using the physical measurement method b) Allocate the joint cost of producing Magna and Delta ore using the relative sales value method. C) The sales manager has advised that a batch of 6 pounds of Delta can be processed further at an additional cost of $20. With this additional processing, the 6 pounds of Delta can be sold for $9.00 a pound. Allocate the $90 cost to Magna and Delta using the net realizable value method if Delta is processed further. d) Based on the information in part c), Information in part c), should Master Company process the Delta further
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