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EXERCISE 12-7 Sell or Process Further L012-7] Dorsey Company manufactures three products from a common input in a joint processing opera tion. Joint processing costs
EXERCISE 12-7 Sell or Process Further L012-7] Dorsey Company manufactures three products from a common input in a joint processing opera tion. Joint processing costs up to the split-off point total $350.000 per quarter. The company allo cates 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 Quarterly Output Selling Price $16 per pound $8 per pound $25 per gallon 15,000 pounds 20,000 pounds 4,000 gallons Each product can be processed further after the split-off point. Adklitional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price A . $63,000 $20 per pound $13 per pound $32 per gallon C .- .-.- $36.000 Differential Analysis: The Key to Decision Making 565 Required: Which product or products should be sold at the split-off point and which product or products should be processed further? Show computations. EXERCISE 12-8 Utilization of a Constrained Resource L012-5, L012-61 Bartom mufc thc Bnd The selline lewe
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