Steelate Company produces stainless steel products. After processing raw materials into products Q, R, and S...

 

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Steelate Company produces stainless steel products. After processing raw materials into products Q, R, and S at the split-off point, the three products can be further processed into Q1, R1, and S1 with a 10% spoilage rate. Based on the information provided in the exhibits, prepare the following analysis of profitability. Joint costs are allocated using the net realizable value (NRV) method and units sold equals units produced. For each item, enter the appropriate amount in the associated cell. Enter all amounts as positive whole numbers. Round interim calculations of percentages to the nearest hundredth. Analysis of Profitability The following analysis shows the profits of three products if they are sold at the split-off point without further processing. Joint costs are allocated using the physical-quantity method. Product Sales Allocated joint cost Q $500,000 $551,250 R $1,600,000 S $1,050,000 $882,000 $771,750 $(51,250) $718,000 $278,250 Net profit (loss) Product 1. Sales 2. Allocated joint costs Further processing costs 3. Net profit (loss) Q1 $450,000 123 $250,000 $450,000 123 R1 123 $1,440,000 123 123 S1 123 Financial Information $945,000 123 Product Price per unit before further processing Further processing costs Price per unit after further processing Q $20 $250,000 $35 $420,000 R $40 $450,000 $55 S $30 $420,000 $45 123 Financial Information Product Price per unit before further processing Price per unit after Further processing costs further processing Q $20 $250,000 $35 R $40 $450,000 $55 S $30 $420,000 $45 Analysis of Profitability The following analysis shows the profits of three products if they are sold at the split-off point without further processing. Joint costs are allocated using the physical-quantity method. Product Q R S Sales $500,000 $1,600,000 $1,050,000 Allocated joint cost $551,250 $882,000 $771,750 Net profit (loss) $(51,250) $718,000 $278,250 Steelate Company produces stainless steel products. After processing raw materials into products Q, R, and S at the split-off point, the three products can be further processed into Q1, R1, and S1 with a 10% spoilage rate. Based on the information provided in the exhibits, prepare the following analysis of profitability. Joint costs are allocated using the net realizable value (NRV) method and units sold equals units produced. For each item, enter the appropriate amount in the associated cell. Enter all amounts as positive whole numbers. Round interim calculations of percentages to the nearest hundredth. Analysis of Profitability The following analysis shows the profits of three products if they are sold at the split-off point without further processing. Joint costs are allocated using the physical-quantity method. Product Sales Allocated joint cost Q $500,000 $551,250 R $1,600,000 S $1,050,000 $882,000 $771,750 $(51,250) $718,000 $278,250 Net profit (loss) Product 1. Sales 2. Allocated joint costs Further processing costs 3. Net profit (loss) Q1 $450,000 123 $250,000 $450,000 123 R1 123 $1,440,000 123 123 S1 123 Financial Information $945,000 123 Product Price per unit before further processing Further processing costs Price per unit after further processing Q $20 $250,000 $35 $420,000 R $40 $450,000 $55 S $30 $420,000 $45 123 Financial Information Product Price per unit before further processing Price per unit after Further processing costs further processing Q $20 $250,000 $35 R $40 $450,000 $55 S $30 $420,000 $45 Analysis of Profitability The following analysis shows the profits of three products if they are sold at the split-off point without further processing. Joint costs are allocated using the physical-quantity method. Product Q R S Sales $500,000 $1,600,000 $1,050,000 Allocated joint cost $551,250 $882,000 $771,750 Net profit (loss) $(51,250) $718,000 $278,250