Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A B Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the spilt-off point total

image text in transcribed
image text in transcribed
A B Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the spilt-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the Joint products on the basis of thelr relative sales value at the split-off point Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output $ 20.00 per pound 13,000 pounds $ 14.00 per pound 20,300 pounds $ 25.00 per gallon 4,200 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below. Additional Processing Product Costs Selling Price $ 70,950 $ 25.10 per pound B $ 101,905 $ 20.10 per pound $ 43,7B0 $ 34.10 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2 Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? C Complete this question by entering your answers in the tabs below. Required: Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.) Product A Product B Product C Financial advantago (disadvantago) of further processing Renuired: Required 2 > prouutise Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further? Product A Product B Product C Sell at split-off point? Process further?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Pension Scheme Accounting

Authors: Shona Harvie, Joanne Scriven, Phil Spary

2nd Edition

1526508974, 9781526508973

More Books

Students also viewed these Accounting questions