Compute the separable processing cost for a batch

Reference no: EM133609347

Question: Gunston Processing produces two products, ALT-1 and ALT-2, from a batch using a single raw material, ALT-0. Both products require further processing before they be can be sold. A batch of ALT-1 can be sold for $153,500 after processing costs of $44,000. A batch of ALT-2 can be sold for $241,400 after further processing. The cost of ALT-0 is $200,000 for a batch. Using the estimated net realizable value method, a joint cost of $120,000 was allocated to ALT-2 for a batch.

Required: Compute the separable processing cost for a batch of ALT-2. Note: Do not round intermediate calculations.

Reference no: EM133609347

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