Saved Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product cost for this bracelet is $260.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $142 83 35 $260 The members of a wedding party have approached Imperial Jewelers about buying 23 of these gold bracelets for the discounted price of $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $464 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell Jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of accepting the special order from the wedding party? Reges Required 2 > Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting system says that the unit product cost for this bracelet is $260.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cont $142 83 35 $260 The members of a wedding party have approached Imperial Jewelers about buying 23 of these gold bracelets for the discounted price of $369.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $464 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party's order using its existing manufacturing capacity Required: 1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party? 2. Should the company accept the special order? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage of accepting the special order from the wedding party? Requr 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should the company accept the special order? 10Yes ONO 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. 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 $ 20.00 per pound $ 14.00 per pound $ 26.00 per gallon Quarterly Output 13,000 pounds 20.300 pounds 4,200 gallons C 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 Processing Selling Product Coats Price $ 70,950 $25.10 per pound $101,905 $20.10 per pound $ 43,780 $34.10 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 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages as a negative value.) Product A Product B Product C Financial advantage (disadvantage) of further processing Required Required 2 > 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. 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: Quarterly Product Selling Price Output $ 20.00 per pound 13,000 pounds $ 14.00 per pound 20,300 pounds c $26.00 per gallon 4,200 gallons 3 Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unlt selling prices after further processing are given below: Product Additional Processing Costs $ 70,950 $101.905 $ 43,780 Selling Price $25.10 per pound $20.10 per pound $34.10 per gallon B c 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 answ nswers 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 (Enter "disadvantages as a negative value.) Product B Product Financial advantage (disadvantage of further processing Anguld Required 2 > Product A Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off po (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 p products should be processed further? Product A Product B Product C Sell at split-off point? Process further?
