LESSON 21.5 YOUTUBE REVIEW

ROBERT Corporation manufactures three products from a joint process. The three products are in industrial grade form at the split-

off point. They can either be sold at that point or processed further into premium grade. Costs related to each batch of this process is

as follows:

Q: What would be the additional amount of profit that ROBERT Corp. would gain from further processing the product(s) that is/are

more profitable to process further rather than be sold at the split-off point?

SalesPriceatsplit-offpointAllocatedjointcostsSalesPriceafterfurtherprocessingCostoffurtherprocessingProductQuantityProduct1$16$6,000$20$6,0101,000lb.Product2$12$6,000$18$1,7301,000lb.Product3$5$6,000$14$1,6501,000lb