Question - 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.
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Sales Value at Split-Off Point
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Allocated Joint Costs
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Cost to Process Further
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Sales Value of Processed Product
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Spock
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$210,000
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$40,000
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$110,000
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$300,000
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|
Uhura
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300,000
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60,000
|
85,000
|
400,000
|
|
Sulu
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455,000
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80,000
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250,000
|
800,000
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Instructions - Determine whether each of the three joint products should be sold as is, or processed further.