Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs 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 24.00 per pound $ 18.00 per pound $ 30.00 per gallon Quarterly Output 13,800 pounds 21,500 pounds 5,000 gallons B 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. Product Additional Processing Costs $ 81,150 $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? 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 Product B Product C Product Price $24.00 per pound 18.00 per pound $ 30.00 per gallon Output 13,00 pounds 21,300 pounds 5.000 gallons B 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: Salling Additional Processing Conta 1.150 3117.135 $ 52,900 529.50 per pound $26.50 per pound $18.50 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 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? (Enter "disadvantages as a negative value.) Product Products Product - Product A B C Selling Price $ 24.00 per pound $ 18.00 per pound $30.00 per gallon Output 13, 800 pounds 21,500 pounds 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: Product Additional Processing Costs $ 81,150 $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? Complete this question by entering your answers in the tabs below. Required 1 Requirt 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 Product B Product C Sell at split-off point? Process further
