Problem -Joint Process
The MeltAway Company produces four unique chemicals from a joint process. The four chemicals are listed below. Chemical Phyllis 234 is not stable at the split off point so it has to be processed further before it is sold. Izzy900 is in its final form at the split-off and does not have an option to be processed further.The remaining chemicals may be sold at its split-off point or processed further. Joint processing costs for a single batch of the joint products are $145,600. Other relevant data are as follows:
Product	Liters Produced	TotalSales Value At Split-Off	Additional Processing Costs	TotalSales Value of Final Product
Kenan456	280	$70,000	$12,000	$94,680
Quinlan657	250	55,120	9,000	46,000
Phyllis234	450	0	28,000	96,900
Izzy900	220	68,900	0	0
Total	1,200	$ 194,020	$ 49,000	$ 237,580
REQUIRED
1. Determine which products should be processed further.
2. If it is determined to not process a product further, it will be sold at the split off point (see your answer to part 1). Allocate the joint cost to the four primary products using the approximated net realizable value method (round to whole dollars).
3. If all liters of each of the four chemicals are sold (either at the split off point or processed further as you determined in part 1) what is the gross profit of each product?