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Thanks so much for the help. It's hard to get a tutor with this virus. Dorsey Company manufactures three products from a common input in
Thanks so much for the help. It's hard to get a tutor with this virus.
Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $325,000 per quarter. For inancial reporting purposes, the company allocate 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 spirit off point are as follows: Product Selling Price 5 15.00 per pound S 9.00 per pound $ 21.00 per gallon Quarterly Output 12,000 pounds 18, 800 pounds 3.200 casion 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 selling Product Additional Processing Coata $59, 100 584,230 $33,250 514.60 per pound 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, 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 belo Required 1 Required 2 What is the financial advantage (disadvantage of further processing each of the three products beyond the (Enter "disadvantages as a negative value off point? Product A Product Product Financial advantage (disadvantage of further processing 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? Product A Product B roduct C Sell at split-off point? Process further? No Yes
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