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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing cost 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 cost 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 A $ 24.00 per pound Quarterly Output 13,800 pounds $ 18.00 per pound 21,500 pounds C $ 30.00 per gallon 5,000 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 Product Processing Costs $ 01,150 $117, 125 $52,900 Selling Price $29.50 per pound $24.50 per pound $38.50 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? Additional Product Processing Costs Selling Price A c $ 81,150 $117,125 $52,900 $29.50 per pound $24.50 per pound $38.50 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 i, 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? (Enter "disadvantages" as a negative value.) Product A Product B Product C Financial advantage (disadvantage) of further processing
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