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required 1 and 2 please Molo Oil Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation Joint
required 1 and 2 please
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 $380,000 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: Monthly Product Selling Price Output Gasoline $26.00 per gallon 14,200 gallons Heating $20.00 per gallon 22,100 gallons Oil Jet Fuel $32.00 per gallon 5,400 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: Product Gasoline Heating 011 Jet Fuel Additional Processing Costo $ 86,490 $125,095 $ 57,700 Selling Price $31.70 per gallon $26.70 per gallon $40.70 per gallon 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? Gasoline Home Heating Oil Jet Fuel Financial advantage (disadvantage) of further processing Required 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 $380,000 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 $26.00 per gallon Heating 011 $20.00 per gallon Jet Fuel 532.00 per gallon Monthly Output 14,200 gallons 22,100 gallona 5,400 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: Product Gasoline Heating 011 Jet Fuel Additional Processing Costa $ 86,490 $125,095 $ 57,700 Selling Price $31.70 per gallon $26.70 per gallon $40.70 per gallon 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? Gasoline Home Heating Oil Jet Fuel Sell at split-off point? Process further? Step by Step Solution
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