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NO LO 5 10 Exercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7] Dorsey Company manufactures three products from a common input in a
NO LO 5 10 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 $335,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products based on their relative sales value at the split-off point Unit selding prices and total output at the split-off point are as follows Product C Selling Price $17.00 per pound $11.00 per pound $23.00 per gallon Quarterly Output 12,400 pounds 19,400 pounds 3,600 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: P Product Required: Additional Processing Costs 63,728 $91,120 $37,300 Selling Price 3 21.00 per pound $ 16.88 per pound 130.00 per gallon 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the spit-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which should be processed further?" Check my work eferences Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Note: Do not round your intermediate calculations. Enter "disadvantages" as a negative value. Product A Product B Product C Financial advantage (disadvantage) of further processing 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 should be processed further? Sell at split-off point? Process further? Product A Product B Product C
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