Help Dorsey Company Manufactures Three Products From A Common Input In A Joint Processing Operation Joint Processing Co 1 (48.01 KiB) Viewed 43 times
Help Dorsey Company Manufactures Three Products From A Common Input In A Joint Processing Operation Joint Processing Co 2 (26.31 KiB) Viewed 43 times
Help 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 A Selling Price $ 16 per pound $8 per pound $ 25 per gallon Quarterly Output 15,000 pounds 20,000 pounds 4,000 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 Costa Product A $ 63,000 Selling Price $ 20 per pound $ 13 per pound B $ 80,000 С $ 36,000 $ 32 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.) Product A Product B Product C Financial advantage (disadvantage) of further processing Required 1 Required 2 > Save &
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 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 Product C Sell at split-off point? Process further? < Required 1 Required 2 >
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