A B C. EXERCISE 6-7 Sell or Process Further Decisions L06-7 Dorsey Company manufactures three products from a common input in a joint processing opera- tion. Joint processing costs up to the split-off point total $350,000 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: Ino Intone pru iqosor megmes or blood? Product B С. Jino q 00. Product Selling Price $16 per pound $8 per pound $25 per gallon 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 Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons $63,000 $80,000 $36,000 Selling Price a e laimon adT beson maod zad jy obno aidT $20 per pound $13 per pound $32 per gallon 1

A B C. EXERCISE 6-7 Sell or Process Further Decisions L06-7 Dorsey Company manufactures three products from a common input in a joint processing opera- tion. Joint processing costs up to the split-off point total $350,000 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: Ino Intone pru iqosor megmes or blood? Product B С. Jino q 00. Product Selling Price $16 per pound $8 per pound $25 per gallon 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 Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons $63,000 $80,000 $36,000 Selling Price a e laimon adT beson maod zad jy obno aidT $20 per pound $13 per pound $32 per gallon 1

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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