Problem 11-76 (Algo) Joint Cost Allocation and Product Profitability (LO 11-7, 8, 9) Imperial Mining is a coal company that produces three grades of coal-High, Medium, and Low-in fixed proportions. The Joint costs of mining total $1.995,000. In a typical month, the company will mine 20,880 tons of High-Grade, 31,320 tons of Medium-Grade, and 10,440 tons of Low-Grade coal. Market prices have been relatively stable at $60 per ton for High-Grade, $40 per ton for Medium- Grade, and $10 per ton for Low-Grade. There are no costs to refine the individual grades of coal once it is mined. Required: a. What is the reported profitability for each grade assuming the physical quantities method is used to allocate the Joint cost of production? b. What is the reported profitability for each grade assuming the net realizable value method is used to allocate the joint cost of production? Complete this question by entering your answers in the tabs below. Required A Required B What is the reported profitability for each grade assuming the physical quantities method is used to allocate the joint cost of production? High-Grade Medium-Grade Low-Grade Total Quantity (tons) Price/ton Revenue (NRV) Allocated joint cost Product profit/loss Roquired Required 8 > Problem 11-76 (Algo) Joint Cost Allocation and Product Profitability (LO 11-7, 8, 9) Imperial Mining is a coal company that produces three grades of coal-High, Medium, and Low-in fixed proportions. The joint costs of mining total $1.995,000. In a typical month, the company will mine 20.880 tons of High-Grade 31,320 tons of Medium-Grade, and 10.440 tons of Low-Grade coal. Market prices have been relatively stable at $60 per ton for High-Grade, $40 per tan for Medium Grade, and $10 per ton for Low-Grade. There are no costs to refine the individual grades of coal once it is mined. Required: a. What is the reported profitability for each grade assuming the physical quantities method is used to allocate the joint cost of production? b. What is the reported profitability for each grade assuming the net realizable value method is used to allocate the joint cost of production? Complete this question by entering your answers in the tabs below. Required A Required B What is the reported profitability for each grade assuming the net realizable value method is used to allocate the joint cost of production? High-Grade Medium-Grade Low Grade Total Quantity (tons) Price/ton Revenue (NRV) Allocated joint cost Product profit/loss
