Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $355,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their 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 $ 21.00 per pound 13,200 pounds $ 15,00 per pound 20,600 pounds $ 27.00 per gallon 4,400 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: A Product A Additional Processing Costs 5 73,440 $ 105,620 $ 46,000 Selling Price $ 26.20 per pound $ 21.20 per pound $ 35.20 per gallon c 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 productor products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) or further processing each of the three products beyond the split-off point? (Enter disadvantages as a negative value.) Product A Product B Product Financial advantage (disadvantage) of further processing Blond A Dorsey Company manufactures three products from a common input in a joint processing operation, Joint processing costs up to the split-off point total $355,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their 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 $ 21.00 per pound 13,200 pounds . $15.00 per pound 20,600 pounds c $ 27.00 per gallon 4,400 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 Conta Selling Price A $ 73,440 $ 26.20 per pound 5 105,620 $ 21.20 per pound $ 46,000 $ 35.20 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 productor products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Requiled 2 Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which productor products should be processed further? Product A Product B Product Sell at split-off point? Process further
