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:

Product

A

B

Selling Price

$ 16.00 per pound

$ 10.00 per pound

$ 22.00 per gallon

Quarterly Output

12,200 pounds

19,100 pounds

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:

Product

B

Additional

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 our 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 or products should be processed further?

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: Each pioduct can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarten) and unit selling prices after further processing are given below: 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. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Do not round your intermediate calculations. Enter filsadvantages" as a negative value.) Required: 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. Based on your analysis in requirement 1 , which product or products should be sold at the spilt-off point and which product or producte thould be processed further