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Exercise 11-7 Sell or Process Further Decisions [LO11-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs

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Exercise 11-7 Sell or Process Further Decisions [LO11-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $325,000 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: Quarterly Product Selling Price Output $15.00 per pound 12,000 pounds $ 9.00 per pound 18,800 pounds $21.6e per gallon 3,200 gallons A B 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: Product A B C Additional Processing Costs $59, 100 $84,230 $33,280 Selling Price $19.60 per pound $14.60 per pound $28.60 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Product A Product Product Financial advantago (Gisadvantage of further $ (3,900) $ 21,050 S (8,880) processing Required 2 >

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