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Category > Accounting Posted 24 Apr 2017 My Price 3.00

Chen Minerals processes materials

E7-11 Chen Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Larco, Marco, and Narco. 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 $180,000 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 at Split-Off Point

 

AllocatedJoint Costs

 

Cost to ProcessFurther

 

Sales Value ofProcessed Product

Larco

$200,000

 

$40,000

 

$110,000

 

$300,000

Marco

300,000

 

60,000

 

85,000

 

400,000

Narco

405,000

 

80,000

 

250,000

 

800,000

Instructions

Determine whether each of the three joint products should be sold as is, or processed further.

 

Answers

Alpha Geek
(8)
Status NEW Posted 24 Apr 2017 04:04 PM My Price 3.00

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Attachments

file 1493049751-1356428_1_636285716943176499_1356428.xlsx preview (166 words )
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