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Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $315,000 per
Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $315,000 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 $33,00 per pound 11,600 pounds $ 7.00 per pound 18,200 pounds $ 19.00 per gallon 2,500 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 seling prices after further processing are given below. Additional Product 5 77,580 $ 12.40 per pound $ 29,360 $24.40 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 on products should be processed further? Processing Costs 5 54,640 Selling Price $ 17.40 per pound A B Complete this question by entering your answers in the tabs below. Required 1 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 Financial advantage (disadvantage) of further processing Required 2 2 Based on your analysis in requirement products should be processed further? Complete this question by entering your answers in the tabs below. nes Required 1 Required Based on your analysis in requirement 1, which product of 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?
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