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please write all calculations a 6. Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to
please write all calculations
a 6. 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 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: Quarterly Product Selling Price Output A $16 per pound 15,000 pounds B $8 per pound 20,000 pounds $25 per gallon 4,000 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 Product Processing Costs Selling Price A........ $63,000 $20 per pound B. $80,000 $13 per pound C.. $36,000 $32 per gallon Required: Which product or products should be sold at the split-off point and which product or products should be processed further? Show computations Step by Step Solution
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