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Dorsey Company manufactures three products from a common inputin a joint processing operation. Joint processing costs up to thesplit-off point total $330,000 per quarter. For financial reportingpurposes, the company allocates these costs to the joint productson the basis of their relative sales value at the split-off point.Unit selling prices and total output at the split-off point are asfollows:ProductSelling PriceQuarterlyOutputA$16.00per pound12,200poundsB$10.00perpound19,100poundsC$22.00pergallon3,400gallonsEach product can be processed further after the split-off point.Additional processing requires no special facilities. Theadditional processing costs (per quarter) and unit selling pricesafter further processing are given below:ProductAdditionalProcessing CostsSellingPriceA$61,390$20.70per poundB$87,645$15.70per poundC$35,300$29.70per gallonRequired:1. What is the financial advantage (disadvantage) of furtherprocessing each of the three products beyond the split-offpoint?2. Based on your analysis in requirement 1, which product orproducts should be sold at the split-off point and which product orproducts should be processed further?