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
Split-Off Point Allocated
Joint Costs Cost to Process
Further Sales Value of
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 Determine the incremental profit or loss that each of the three joint products. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Spock Uhura Sulu Incremental profit (loss) $Kirk Minerals processes materials extracted $Kirk Minerals processes materials extracted $Kirk Minerals processes materials extracted Indicate whether each of the three joint products should be sold as is, or processed further.
Spock Kirk Minerals processes materials extracted sold as isprocess further Uhura Kirk Minerals processes materials extracted process furthersold as is Sulu Kirk Minerals processes materials extracted sold as isprocess further
