Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total

please help

image text in transcribedimage text in transcribed
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. The company allocates these costs to thejoint products on the basis oftheir relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Selling Price Output Product A $ 16 per kg 15,000 kg Product 1! S 8 per kg 20,000 kg Product C S 25 per litre 4,000 litres 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 Processing Costa Price Product A 563,000 $ 20 per kg Product 1! $80,000 5 13 per kg Product C $36,000 5 32 per litre Required: a. Compute the incremental prot (loss) for each product. Selling price after further processing Selling price at the split-off point Incremental revenue per kg or gallon Total quarterly output in kgs or gallons Total incremental revenue Total incremental processing costs Total incremental prot or loss b. Which product or products should be sold at the split-off point? (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.) Product A Product B Product C c. Which product or products should be processed further? (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.) Product A Product B Product C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Marketing Research

Authors: Naresh K. Malhotra

1st Global Edition

1292060166, 9781292060163

Students also viewed these Accounting questions