Sell or Process Further Storey Corp. manufactures three products in a joint process. Each of the products can be sold at split-off or may be processed further. Using the following per unit information, determine which of the products should undergo further processing. | | JP #1 | JP #2 | JP #3 | | :--- | :--- | :--- | :--- | | Sales value at split-off | $360 | $290 | $585 | | Sales value after further processing | 410 | 330 | 650 | | Joint costs allocated at split-off | 215 | 185 | 380 | | Costs of further processing | 55 | 25 | 45 |
Added by Nicholas L.
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Net revenue is the sales value minus the joint costs allocated at split-off. For JP#1: Net revenue at split-off = $215 - $360 = -$145 Net revenue after further processing = $185 - ($360 + $55) = -$230 For JP#2: Net revenue at split-off = $185 - $290 = -$105 Net Show more…
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