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show all work E7-11 Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint...

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E7-11 Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Spock, Uhura, and Sulu. 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                                                                                        Sales Value of

                       Split-Off Point   Allocated Joint Costs      Cost to Process Further   Processed Product

Spock               $210,000          $40,000                        $110,000                                  $300,000

Uhura             300,000             60,000                        85,000                                      400,000

Sulu                  455,000           80,000                         250,000                                    800,000


Instructions

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

Top Answer

Answer Product Uhura & Product should be processed further as it would... View the full answer

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Other Answers

Spock should not be processed further.... View the full answer

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