Thank You !!
Dorsey Company manufactures three products from a common input in ajoint processing operation. Joint processing costs up to the split-off point total $380,000 per quarter. For financial reporting purposes, the company allocates these costs to thejoint 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 $ 26.00 per pound 14,200 pounds B $ 20.00 per pound 22,100 pounds C $ 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: Additional Selling Product Processing Costs Price A $ 86,490 $31.70 per pound B $125,095 $26.70 per pound C $ 57,700 $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. Requked 1 Requked 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.) B 5'; 29.90 per' pound 221% pounds C $ 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: Additional Selling Product Processing Costs Price A $ 86,490 $31.70 per' pound B $125,095 $26.70 per' pound C $ 57,700 $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? (Enter "disadvantages" as a negative value.) Financial advantage (disadvantage) of further processing _l-'-' Required 2 > B $ 26.66 per pound 22,166 pounds C $ 32.66 per gallon 5,466 gallons Each product can be processed further after the splitoff 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 Product Processing Costs Price A $ 86,496 $31.76 per pound B $125,695 $26.76 per pound C $ 57,766 $46.76 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each ofthe 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 _i_i_i _i-i_i
