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: Quarterly Selling Price Output $16.00 per pound 12,200 pounds $ 10,00 per pound 19.100 pounds $ 22.00 per gallon 3,400 gallons Product A B 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 Selling Product Processing Costs Price $61,390 $20.70 per pound 587,645 $15.70 per pound $35,300 $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 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Product A Product B Product C Financial advantage (disadvantage) of further processing Required 2 > Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up split-off point total $330,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint produ 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 Product Selling Price Output A $ 16.00 per pound 12,200 pounds B $10.00 per pound 19,100 pounds $ 22.00 per gallon 3,400 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 $61,390 $87,645 $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 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 Sell at split off point? Process further?
