Molo O Company produces gasoline, home heating out, and jet fuel from crude oit in a joint processing operation, Joint processing costs up to the split-off point total $390,000 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 as follows Product Selling Price Gasoline 528.00 per gallon Heating 522.00 per gallon On Jet Fuel 534.00 per gallon Monthly Output 24,600 gallons 22,700 gallons 5,800 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 Additional Selling Product Processing costs Price Gasoline 591.990 533.90 per gallon Heating 01 3133, $26.90 per gallon Jet Fuel 562,660 542.00 per gallon Required: 1 What is the financial advantage (disadvantage) of further processing each of the three products beyond the spirit-off point? 2. Based on your analysis in requirement which product or products should be sold at the split-off point and which product on 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 on Jet Fuel Financial advantage disadvantage of further processing Required 2 > 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 $390,000 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 sple-off point are as follows Product Selling Price Gasoline 528.00 per gallon Heating Oil 5 22.00 per gallon Det l 534.00 per sallon Monthly Output 14,600 gallons 22,700 gallons 5.890 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 Additional Selling Product Processing Costs 'price Osoline $ 91,990 533.00 per callon Heating $133,305 $20.90 per gallon 011 Jet Fuel $ 62.60 342.00 per sallon Required: 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 tequirement 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 Based on your analysis in requirement 1, which product or products should be sold at the stort point and which productor products should be processed further itine ating Seat split point Process further
