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Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the spilt-off point total $360,000 per
Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the spilt-off point total $360,000 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 Quarterly Output 13, 400 pounds 20,900 pounds 4,600 gallons Selling Price 22.00 per pound $ 16.00 per pound $28.00 per gallon 3 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: Selling Product Muitional Processing Coate $ 75,970 $109,395 $ 48,260 $27.30 per pound $22.30 per pound $36.30 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. 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 product or products should be processed further? Complete this question by entering your answers in the tabs below. erences 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 productor products should be processed further? Product Product Product C Solat po point? Process further ( Raquired 1
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