Exercise 13-7 (Algo) Sell or Process Further Decisions (LO13-7) Dorsey Company manufactures three products from a common input in a joint processing operation, Joint processing costs up to the split-off point total $350,000 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 $ 20.00 per pound 13,000 pounds $ 14.00 per pound 20,300 pounds $26.00 per gallon 4,200 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: B c Product A B Additional Processing Costs $ 70,950 $ 101,905 $ 43,780 Selling Price $ 25.10 per pound $ 20.10 per pound $ 34.10 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? 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? (Enter "disadvantages as a negative value.) Product A Product B Product Financial advantage (disadvantage) of further processing Required 2 > Exercise 13-7 (Algo) Sell or Process Further Decisions (LO13-7) Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $350,000 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 $ 20.00 per pound 13,000 pounds $ 14.00 per pound 20,300 pounds $26.00 per gallon 4,200 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: B c Product A B c Additional Processing Costs $ 70,950 $ 101,905 $ 43,780 Selling Price $ 25.10 per pound $ 20.10 per pound $ 34.10 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 Required2 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 A Products Product C Sell at split-off point? Process further
