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managerial accounting onnect Help Save K Et Submit Check my work Exercise 13-7 (Static) Sell or Process Further Decisions (LO13-7) Dorsey Company manufactures three products
managerial accounting
onnect Help Save K Et Submit Check my work Exercise 13-7 (Static) 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 $ 16 per pound 15,000 pounds $ 8 per pound 2e, eee pounds $ 25 per gallon 4,eee 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 A B C Product A B Additional Processing Costs $ 63,000 $ 80, eee $ 36,000 Selling Price $ 2e per pound $ 13 per pound $ 32 per gallon Required: 1. What is the financial advantage (disadvantage of further processina each of the three products bevond the split-off point? Help Save & Exit Submit Check my work 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 Required 2 > Prey 7 of 17 HE Next > 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 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 Step by Step Solution
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