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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

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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. Unit seling prices and total output at the split-off point are as follows: Product B Selling Price $ 10.00 per pound $ 4.00 per pound $16.00 per Ballon Quarterly Output 11,000 pounds 17,300 pounds 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 Selling Product Processing Costs Price $48,250 $14.10 per pound $68,055 $ 9.10 per pound $23,780 $23.10 per gallon B 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? Product Product B Product Financial advantage (disadvantage of further processing ROS Required 2 > Complete this question by entering your answers in the tabs below. -SK ant Required 1 Requirede ences 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? Product A Products Product Sell at split-off point? Process further?

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