Exercise 11-7 (Algo) Sell or Process Further Decisions (LO11-7) A B Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $340,000 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 Selling Price Quarterly Output $ 18.00 per pound 12,600 pounds $ 12.00 per pound 19,700 pounds $ 24.00 per gallon 3,800 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 Product Costs Selling Price $ 66,090 $ 22.90 per pound $ 94,655 $ 17.90 per pound $ 39,460 $ 31.90 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? ences 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? (Enter disadvantages as a negative value. Product A Products Producto Financial advantage (disadvantage of further processing Required 2 > Exercise 11-7 (Algo) Sell or Process Further Decisions (LO11-7) B Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the spilt-off point total $340,000 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 Selling Price Quarterly Output $ 18.00 per pound 12,600 pounds $ 12.00 per pound 19,700 pounds $ 24.00 per gallon 3,800 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 unlt selling prices after further processing are given below: Addition 1 Processing Product Costa Selling Price $ 66,090 $ 22.90 per pound B $ 94,655 $ 17.90 per pound $ 39,460 $31.90 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 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 Sel at split-off point? Process further? Product Product (Required 1
