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Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $310.000 per
Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $310.000 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 Quarterly Output $12.00 per pound 11,400 pounds $ 6.00 per pound 17,960 pounds $ 18.00 per gallon 2, 600 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 A B C Additional Processing Costs $ 52,470 $ 74,345 $ 27,460 Selling Price $16.30 per pound $ 11.30 per pound 5 25.30 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 Financial advantage (disadvantage of further processing Required 2 >
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