90.2K

Verified Solution

Link Copied!

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the pilt-off point total $320.000 per quarter. For financlal reporting purposes, the company allocates these costs to the joint products on he basis of their relative sales value at the split-off point. Unit selling prices and total output at the spit-off point are as follows. Each product can be processed further after the split-off point. Additional processing requires no spectal facilites. The additional orocessing costs (per quarten) and unit selling prices after further processing are given below: Required: What is the financlal advantage (disadvantage) of further processing each of the three products beyond the spilt-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. What is the financial advantage (disadvantage) of further processing esch of the three products beyond the split-off point? (Enter "disadvantages" as a negapve valve.) Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $320.000 per quaner. 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. Each product can be processed further after the split-off point. Additional processing requites no special facilines. The additionai processing costs (per quarten and unit selling prices after further processing are given below: Required: 1. What is the financlal advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2 Bared on your analysis in regulrement 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. Bared on your analysis in requirement 1 , which product or products should be seld at the spit-off point and which product or products should be processed further

Answer & Explanation Solved by verified expert

See Answer