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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 $370,000 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 $370,000 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 A $ 24.00 per pound 13,800 pounds D $18.00 per pound 21,500 pounds C $ 30.00 per gallon 5,000 gallons Book 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 $ 81,150 Selling Price $ 29.50 per pound Product A B $ 117,125 $ 24.50 per pound 4 C 5 52,900 $ 38.50 per gallon ces 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 oducts 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? (Enter "disadvantages" as a negative value.) Financial advantage (disadvantage) of further processing Required 1 Product A Product B Product C Required 2 > 5 Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 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 5 mints Quarterly Output $ 24.00 per pound 13,800 pounds B $ 18.00 per pound 21,500 pounds e $ 30.00 per gallon 5,000 gallons eBook 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 Costa Hint Product B $ 81,150 $117,125 Print c $ 52,900 erences Required: Selling Price: $ 29.50 per pound $ 24.50 per pound $ 38.50 per gallon 1. What is the financial advantage (disadvantage) of further pro 2. Based on your analysis in requirement 1, which product or p products should be processed further? sing each of the three products beyond the split-off point? cts should be sold at the split-off point and which product or 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 A Product B Product C Sell at split-off point? Process further
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