Blasto, Inc., operates several mines. At one, a typical batch of ore run through

Question

Blasto, Inc., operates several mines. At one, a typical batch of ore run through the plant yields three products: lead, copper, and manganese. At the split-off point, the intermediate products cannot be sold without further processing. The lead from a typical batch sells for $52,000 after incurring additional processing costs of $14,600. The copper is sold for $95,000 after additional processing costs of $10,000, and the manganese yield sells for $66,000 but requires additional processing costs of $18,400. The joint costs of processing the raw ore, including the cost of mining, are $165,000 per batch. Required Use the estimated net realizable value method to allocate the joint processing costs. (Do not round intermediate calculations.) Lead Copper Manganese Approximate sales value at split-off Percent of total sales values at split-off Cost allocation

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Lead Copper Manganese Total Sales Value               52,000.00             95,000.00             66,000.00 Additional processing costs            (14,600.00)           (10,000.00)           (18,400.00) Net realisable value               37,400.00             85,000.00             47,600.00           170,000.00 % of total sales value 22.00% 50.00% 28.00% 100.00% Allocation of Joint costs               37,400.00             85,000.00             47,600.00           170,000.00

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