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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 $395,000

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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 $395,000 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 A Selling Price $29.00 per pound $23.00 per pound $35.Be per pallon Quarterly Output 14,800 pounds 23,000 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: Additional Product Processing Costs 594, $137.500 $ 65,200 Selling Price $35.00 per pound 330.00 per pound $44.88 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 Product B Product Financial advantage (disadvantage) of further processing Required t Required 2 > 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 Products Product C Sell at split-off point? Process further?

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