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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 $325,000
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $325,000 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: Quarterly Output Product Selling Price A $ 15.00 per pound 12,000 pounds B C 3,200 gallons $9.00 per pound $21.00 per gallon 18,800 pounds 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 Additional Processing Costs $ 59,100 $ 84,230 $33,280 Selling Price $ 19.60 per pound $ 14.60 per pound $ 28.60 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? 0 Answer is complete but not entirely correct. Camalate this auction hu antarina unur neware in the the hala
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