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