Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $91,000 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 $91,000 per quarter. 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:

image text in transcribed

image text in transcribed

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $91,000 per quarter. 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 Quarterly Output Product Selling Price 5 per pound 10,000 pounds 6 per pound 15,000 pounds 9 per gallon 7,000 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 Costs $43,000 36,000 $12,000 Product Selling Price $ 8 per pound S 11 per pound $ 11 per gallon Required a. Compute the incremental profit (loss) for each product. Product A Product B Product C Selling price after further proces Selling price at the split-off point Incremental revenue per pound or gallon Total quarterly output in pounds or gallons Total incremental revenue Total incremental processing costs Total incremental profit or loss sing

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_2

Step: 3

blur-text-image_3

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

Audit Of EPAs Fiscal 2012 And 2011 Consolidated Financial Statements

Authors: U.S. Environmental Protection Agency

1st Edition

1500624705, 978-1500624705

More Books

Students also viewed these Accounting questions

Question

6. How does a claim differ from an adjustment?

Answered: 1 week ago