Exercise 20-11 Kirk Minerals processes materials extracted from mines. The mos c

Question

Exercise 20-11 Kirk Minerals processes materials extracted from mines. The mos comon aw material that it processes results in three Joint products: Spock, Uhura, and Sulu. Each er these products can be sold as is, or each can be procesed further and sold for a igher price. The company incursjurt costs of 18 1,000 Lu process une batch of the 'aw ma eril hat produces the hree juint pruducls. The follo in cual and sales information is available or one batch ur each product. Sales Value of Processed Product $299,900 400,800 799,500 Sales Value at Cost to Process Joint Costs $40,600 60,600 79,000 Split-off Point Spock Uhura $209,600 299,100 454,500 $109,600 05,100 250,700 Deterrnine the incremental profit or less that each of the three joint pruducts. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Spock hura Sulu Incremental profit (las5)

Explanation / Answer

Calculate incremental profit and loss :

b) indicate whether sold as is or processed further :

Spock Uhura Sulu Revenue after further processing 299900 400800 799500 Revenue at split off point 209600 299100 454500 Incremental revenue 90300 101700 345000 Incremental cost (109600) (85100) (250700) Incremental profit (loss) (19300) 16600 94300

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