Business, 12.08.2020 06:01 carlosbs71

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $345,000 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 Selling Price Quarterly OutputA$19.00per pound 12,800poundsB$13.00per pound 20,000poundsC$25.00per gallon 4,000gallonsEach product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:Product Additional Selling Processing Costs PriceA$ 68,500$24.00per poundB$ 98,250$19.00per poundC$ 41,600$33.00per gallonRequired: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?

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