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.

Product	Q1	R1	S1
1. Sales
2. Allocated joint costs
Further processing costs	$250,000	$450,000	$420,000
3. Net profit (loss)

Exhibit 1

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

Exhibit 2

Product Price per unit before further processing Further processing costs Price per unit after further processing

Q $20 $250,000 $35

R $40 $450,000 $55

S $30 $420,000 $45