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 $315,000 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 spin-off point, Unit selling prices and total output at the spin-off point are as follows: Quarterly Selling Price Output $13.00 per pound $ 7.00 per pound 18.200 pounds $19.00 per gallon 2,800 gallons Product A B 11,600 pounds 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: Additionat Processing Selling Product Costs Price $54,640 $17.40 per pound $77.580 $12.40 per pound $29,360 $26.40 per gallon 8 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 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Product A Products Product C Financial advantage (disadvantage) of further processing Required 2 > 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 on products should be processed further? Product Product B Product C Set at spit off point? Process further? Rel No Yes