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 orproducts should be processed further?Complete this question by entering your answers in the tabs below.Required 1 Required 2What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?Product AProduct BProduct CFinancial advantage (disadvantage) of further processing<Required 1Required 2 > Exercise 11-7 Sell or Process Further Decisions [LO11-7]Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to thesplit-off point total $305,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products onthe 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:QuarterlyOutputProductASelling Price$11.00 per pound$5.00 per pound$17.00 per gallonB11,200 pounds17,600 pounds2,400 gallonsCEach product can be processed further after the split-off point. Additional processing requires no special facilities. The additionalprocessing costs (per quarter) and unit selling prices after further processing are given below:AdditionalProcessingCostsSellingPriceProduct$15.20 per pound$50,340$71,170$25,600$10.20 per pound$24.20 per gallonABC

The question is related Process Costing. Joint cost is that cost which is incurred in making of…

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? Product A Product B Product C Financial advantage (disadvantage) of further processing < Required 1 Required 2 >

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? Product A Product B Product C Financial advantage (disadvantage) of further processing < Required 1 Required 2 >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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?
Product A
Product B
Product C
Financial advantage (disadvantage) of further processing
<
Required 1
Required 2 >

Exercise 11-7 Sell or Process Further Decisions [LO11-7]
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
split-off point total $305,000 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:
Quarterly
Output
Product
A
Selling Price
$11.00 per pound
$5.00 per pound
$17.00 per gallon
B
11,200 pounds
17,600 pounds
2,400 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
Costs
Selling
Price
Product
$15.20 per pound
$50,340
$71,170
$25,600
$10.20 per pound
$24.20 per gallon
ABC

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