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Exercise 13-7 (Static) Sell or-Process Further Decisions (L013-7) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs

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Exercise 13-7 (Static) Sell or-Process Further Decisions (L013-7) 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 AS 16 per pound 3 $ per pound e 525 per gallon Quarterly Output 15,000 pounds 20,000 pounds 4,000 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: Product Additional Processing Costs $63,000 $80,000 $36,000 Selling Price $20 per pound $13 per pound $32 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? onces 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 Roqulid: Required 2 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 or products should be processed further? Product A Product B Product C Sell at split-off point? Process further?

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