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April 9, 2021

Joint Cost

General Questions

Joint Cost

Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250 pounds of gold and 63,400 pounds of copper.

The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $0.85 per pound.

Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Cooper?

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