Dorsey Company manufactures three products from a common input in a joint processing operation, Joint processing costs up to the split-off point total $300,000 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. Unlt selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output $ 10.00 per pound 11,000 pounds B 5 4.00 per pound 17,300 pounds $ 16.00 per gallon 2,200 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 Processing Product Costs Selling Price $ 48.250 $ 14.10 per pound B $ 68,055 $9.10 per pound $ 23,780 $ 23.10 per gallon Required: 1. What is the financial advantage (disadvantage of further processing each of the three products beyond the spilt-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? C Complete this question by entering your answers in the tabs below. Product B Processing Costs Selling Price $ 48,250 $ 14.10 per pound $ 68,055 $ 9.10 per pound $ 23,780 $ 23.10 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? 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 Financial advantage (disadvantage) of further processing Required 2 > Processing Product Costs Selling Price A $ 48,250 $ 14.10 per pound B $ $ 68,055 $ 9.10 per pound $ 23,789 $ 23.10 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? 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 on products should be processed further? Product A Products Product Sell at split-off point? Process further?
