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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
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
splitoff point total $ per quarter. For financial reporting purposes, the company allocates these costs to the joint products
based on their relative sales value at the splitoff point. Unit selling prices and total output at the splitoff point are as follows:
Each product can be processed further after the splitoff point. Additional processing requires no special facilities. The additional
processing costs per quarter and unit selling prices after further processing are given below:
Required:
What is the financial advantage disadvantage of further processing each of the three products beyond the splitoff point?
Based on your analysis in requirement which product or products should be sold at the splitoff point and which should be
processed further?
Answer is complete but not entirely correct.
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What is the financial advantage disadvantage of further processing each of the three products beyond the splitoff point?
Note: Do not round your intermediate calculations. Enter "disadvantages" as a negative value.
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