Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $330.000 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 $ 16.00 per pound $ 10.00 per pound $22.per gallon Quarterly Output 12,200 pounds 19,100 pounds 3.400 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 asditional Product Processing Costs $61.39 $57,645 $35.300 Selling Price $20.70 per pound $15.70 per pound $29.70 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 productor products should be processed further? Complete this question by entering your answers in the tabs below. Required 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 Product Product Financial advantage disadvantage of further processing Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 91,200 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and adeinistrative expenses Fixed selling and administrative expenses $ 3.00 $ 0.60 The normal selling price is $25.00 per unit. The company's capacity is 112,800 units per year. An order has been received from a mail- order house for 1.800 units at a special price of $22.00 per unit. This order would not affect regular sales or the company's total fixed costs Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order? Required 2 >
