es Dorsey Company manufactures three products from a common input in a joint processing operation. Joint...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
es Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $320,000 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: Selling Price Quarterly Output 11,800 pounds Product A $ 14.00 per pound B $ 8.00 per pound C $ 20.00 per gallon 18,500 pounds 3,000 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 Processing Costs Selling Price $ 18.50 per pound Product A $ 56,850 B $ 80,875 $ 13.50 per pound C $ 31,300 $ 27.50 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 es Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $320,000 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: Selling Price Quarterly Output 11,800 pounds Product A $ 14.00 per pound B $ 8.00 per pound C $ 20.00 per gallon 18,500 pounds 3,000 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 Processing Costs Selling Price $ 18.50 per pound Product A $ 56,850 B $ 80,875 $ 13.50 per pound C $ 31,300 $ 27.50 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
Expert Answer:
Answer rating: 100% (QA)
Answer Lets break down the financial advantage or disadvantage of further processing for each produc... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
ABC Inc. has provided returns of 6%, 12%, -16%, 4%, 8%, 3%, -5%, 8%, -11%, and 14% over the past ten years. Compute the arithmetic and geometric means of the returns. What was the standard deviation...
-
Q1. Lett be a parameter. For which values of t does the system of equations have 4(t + 4)x+ 21y = 56 12x + 3ty = 24 exactly one solution, no solution, or infinitely many solutions?
-
Identify the major differences in financial statements between the University of Michigan and the University of Detroit Mercy. For each difference, provide your opinion on why there is a difference...
-
One reason you might choose to sync a SharePoint library to your computer is to Select an answer: have a separate copy that your colleagues can't affect have a separate copy in case SharePoint breaks...
-
The following table classifies a stocks price change as up, down, or no change for both todays and yesterdays prices. Price changes were examined for 100 days. A financial theory states that stock...
-
The following data are for a falling-head permeability test: Length of the soil sample = 500 mm Area of the soil sample = 1600 mm2 Area of the standpipe = 97 mm2 At time t = 0, head difference =...
-
Each of the following statements is true regarding capital budgeting decisions, except: a. Capital expenditure proposals involve risk. b. Acommon error is to invest in unnecessary or overly complex...
-
To determine whether training in a series of workshops on creative thinking increases IQ scores, a total of 70 students are randomly divided into treatment and control groups of 35 each. After two...
-
1 1 point Why are the triangles similar? triangles are not similar SSS SAS AA 1 point Why are the triangles similar? 2 2 SSS AA triangles are not similar
-
Please answer all the following questions and show allcalculations : Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather...
-
The GDPR is often lauded for its provisions that promote better privacy practices in the private sector. At the same time, the GDPR puts a greater onus on companies to be compliant. What are some of...
-
How does the unconventional narrative structure in works like "One Hundred Years of Solitude" or "Cloud Atlas" affect the reader's comprehension and engagement with the text ?
-
How does Dostoevsky employ existential themes in his magnum opus "The Brothers Karamazov," and what insights does it offer into the human condition ?
-
what ways does postmodern literature challenge or subvert traditional metanarratives, and how does this reflect broader cultural shifts ?
-
Francis Manufacturing Company manufactures two products, base guitars and electric keyboards. The company's overhead costs consist of setting up machines, $2,400,000; machining, $5,400,000; and...
-
Using the Case Exhibit 3, set up a model for minimum and maximum inventory levels for Westa Petroleum Services (WPS).from the caseINVENTORYMANAGEMENTATWESTAPETROLEUMSERVICES
-
Review Exhibit 11.4. Analyze each product on the graph according to the characteristics that influence the rate of adoption. For example, what can you conclude from the data about the relative...
-
How can external annual financial accounting statements be used by managers within an organisation?
-
Explain the main purpose of the income statement, cash flow statement and the statement of financial position.
-
What are the benefits of having international financial report standards?
Study smarter with the SolutionInn App