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VERY EASY!! please do both parts 1 and 2 for a easy thumbs up C Dorsey Company manufactures three products from a common input in
VERY EASY!! please do both parts 1 and 2 for a easy thumbs up
C Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $390,000 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 spin-off point are as follows Product Selling Quarterly Output $ 25.0e per pound 14,600 pounds 5 22.00 per pound 22,700 pounds $ 34.00 per gallon 5,000 pallons 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 Price $ 91,990 $ 33.90 per pound $ 133,105 $20.00 per pound $ 52,660 $42.90 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 spirit of point and which productor products should be processed further? Product Costs Complete this question by entering your answers in the tabs below Required 1 Required 2 Based on your analysis in requirements, which product or products should be sold at the split off point and which productor products should be processed further? Product Product Product Sell at split off point? Process further Step by Step Solution
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