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G ezto.mheducation.com Question 5 - HW Chapter AccessUH McGraw Hill - Prechapter assignments... es uh - Yahoo Search Results Saved HW Chapter 11 i 5

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G ezto.mheducation.com Question 5 - HW Chapter AccessUH McGraw Hill - Prechapter assignments... es uh - Yahoo Search Results Saved HW Chapter 11 i 5 Molo Oil Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation. Joint processing costs up to the split-off point total $365,000 per month. 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 20 as follows: points Monthly Product Selling Price Output Gasoline $23.00 per gallon 13, 600 gallons Heating $17.00 per gallon 21, 200 gallons Book oil Jet Fuel $29.00 per gallon 4, 800 gallons Hint 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: Print Additional Processing Selling Product Costs Price Gasoline $ 78, 540 $28.40 per gallon References Heating oil $113, 230 $23. 40 per gallon Jet Fuel $ 50, 560 $37.40 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? Gasoline Home Heating Oil Jet Fuel Financial advantage (disadvantage) of further processing Required 1 Required 2 > Hill

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