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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 $350,000

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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 $350,000 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: Selling Price Quarterly Output 13,000 pounds Product A $ 20.00 per pound B $ 14.00 per pound 20,300 pounds C 4,200 gallons $26.00 per gallon 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: Product A B C Required: Additional Processing Costs $ 70,950 $ 101,905 $ 43,780 Selling Price $ 25.10 per pound $ 20.10 per pound $ 34.10 per gallon 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 21 What is the financial advantage (disadvantage) of further processing each of the three products hevond the split-off point?

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