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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint...

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Accounting

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:
\table[[Product,Selling Price,Quarterly Output],[A,$12.00 per pound,11,400 pounds],[B,$6.00 per pound,17,900 pounds],[C,$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:
Required:
What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?
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?
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