Reference no: EM132873738

Problem - 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 $67,000 after incurring additional processing costs of $26,300. The copper is sold for $102,000 after additional processing 10 costs of $9,500, and the manganese yield sells for $69,000 but requires additional processing costs of $17,200. The joint costs of points processing the raw ore, including the cost of mining, are $195,000 per batch. Use the estimated net realizable value method to allocate the joint processing costs.