Exercise 11-7 Sell or Process Further Decisions [LO11-7] Dorsey Company manufactures three products from a common l al saso o00 per quarter. For financial repoting purposes, the comnany allocatebs theste fosts input in a joint processing operation. Joint processing costs up to the r. 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 fo s Quarterly Output Produc Selling Price $ 16 per pound 15,e0e pounds $ 8 per pound 28,e0e pounds 25 per gallon 4,e00 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The addlitional processing costs (per quarter) and unit selling prices after further processing are given below Additional Processing Selling Price per Costs $63,eee s80,ee0 Produc $20;ound per $13 pound per $36,eee $32 Oo Saved c $36,000 $32 gallon Required: a) 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 splt-off point? Financial advantage (d tage) of further processing Required 2 > K Prev 7 of 13 Next>