Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split off point total $380,000 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 $26.00 per pound $ 20.00 per pound 12.00 per gallon Quarterly Output 14,200 pounds 22,100 pounds 5,40 gallons C 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 Selling Product ional Processing costs $36.490 $125,095 $57.700 $31.0 per pound $26.70 per pound $40.70 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? Complete this question by entering your answers in the tabs below. Additional Product Processing Costs $86,450 $125, $ 57,700 Price $31.70 per pound $26.70 per pound $40.0 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? 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? Product Product B Product Financial advantage (disadvantage of further processing Required Required 2 > Additional Product Processing costs $36,49 $125, 5 C $ 57,700 Selling Price $31.70 per pound 26,7 per pound 540.20 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 product or products should be processed further? 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 Product B Product C Sel at split off point? Process further?
