Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to thesplit-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products onthe basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:QuarterlyOutput13,000 pounds20, 300 pounds4, 200 gallonsProductSelling Price$ 20.00 per pound$ 14.80 per pound$ 26.80 per gallonABEach 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:AdditionalProduct Processing Costs$ 70,950$181,905$ 43,780SellingPrice$25.10 per pound$20.10 per pound$34.10 per gallonARequlred: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 1Required 2Based 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?Product AProduct BProduct CSell at split-off point?Process further?< Required 1Required 2 Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to thesplit-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products onthe basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:QuarterlyOutput13,000 pounds20, 300 pounds4, 200 gallonsProductSelling Price$ 20.00 per pound$ 14.00 per pound$ 26.00 per gallonABEach 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:AdditionalSellingPriceProduct Processing Costs$ 70,950$181,905$ 43,788$25.10 per pound$20.10 per pound$34.10 per gallonABRequired: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 1Required 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 processingRequired 1Required 2 >

Dorsey Company manufactures three products from a common input in a joint processing operation. 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: Selling Price $ 20.00 per pound $ 14.00 per pound $ 26.80 per gallon Quarterly Output 13, e00 pounds 20, 300 pounds 4, 208 gallons Product A B Each product can be processed further after the split-off point. Additional processing requires no special facilities. The aditional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs $ 70,950 $101,905 $ 43,780 Selling Price $25.10 per pound $20.10 per pound $34.10 per gallon A Requlred: 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?

Dorsey Company manufactures three products from a common input in a joint processing operation. 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: Selling Price $ 20.00 per pound $ 14.00 per pound $ 26.80 per gallon Quarterly Output 13, e00 pounds 20, 300 pounds 4, 208 gallons Product A B Each product can be processed further after the split-off point. Additional processing requires no special facilities. The aditional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs $ 70,950 $101,905 $ 43,780 Selling Price $25.10 per pound $20.10 per pound $34.10 per gallon A Requlred: 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?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of Product Y, and 1,000 units of Product Z is $50,000. The unit sales values of the three products at the split-off point are Product X–$30, Product Y–$100, and Product Z–$90. Ending inventories include 200 units of Product X, 300 units of Product Y, and 100 units of Product Z. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their sales values at split-off. Assume that Product Z can be sold for $120 a unit if it is processed after split-off at a cost of $10 a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values.
Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company incurred costs of $66,000. Product H weighs 44 pounds and product C weighs 66 pounds. Product H sells for $250 per pound and product C sells for $295 per pound. Based on a physical measure of output, allocate joint costs to products H and C.
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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $310,000 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 Output A $ 12.00 per pound 11,400 pounds B $ 6.00 per pound 17,900 pounds C $ 18.00 per gallon 2,600 gallons 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: Product Additional Processing Costs Selling Price A $ 52,470 $ 16.30 per pound B $ 74,345 $ 11.30 per pound C $ 27,460 $ 25.30 per gallon Required: 1. What is the financial advantage…
Dorsey Company manufactures three products from a common input in a joint processing operation. 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: Product Selling Price Quarterly Output A $ 20.00 per pound 13,000 pounds BU B $ 14.00 per pound 20,300 pounds с $ 26.00 per gallon 4,200 gallons 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: Product Additional Processing Costs $ 70,950 Selling Price $ 25.10 per pound $ 20.10 per pound A B $ 101,905 $ 43,780 $ 34.10 per gallon с Required: 1. What is the financial advantage (disadvantage) of further…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products based on 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 Output A $ 24.00 per pound 13,800 pounds B $ 18.00 per pound 21,500 pounds C $ 30.00 per gallon 5,000 gallons 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: Product Additional Processing Costs Selling Price A $ 81,150 $ 29.50 per pound B $ 117,125 $ 24.50 per pound C $ 52,900 $ 38.50 per gallon Required: What is the financial advantage (disadvantage)…
Check n Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $300,000 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 Selling Price A $ 10.00 per pound 11,000 pounds B $ 4.00 per pound с $16.00 per gallon. 17,300 pounds 2,200 gallons 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 Product Processing Costs ABC $48,250 $68,055 $23,780 Selling Price $14.10 per pound $ 9.10 per pound $23.10 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $315,000 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 QuarterlyOutput A $ 13.00 per pound 11,600 pounds B $ 7.00 per pound 18,200 pounds C $ 19.00 per gallon 2,800 gallons 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: Product AdditionalProcessing Costs SellingPrice A $ 54,640 $ 17.40 per pound B $ 77,580 $ 12.40 per pound C $ 29,360 $ 26.40 per gallon Required: 1. What is the financial…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $315,000 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 Output A $ 13.00 per pound 11,600 pounds B $ 7.00 per pound 18,200 pounds C $ 19.00 per gallon 2,800 gallons 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: Product Additional Processing Costs Selling Price A $ 54,640 $ 17.40 per pound B $ 77,580 $ 12.40 per pound C $ 29,360 $ 26.40 per gallon Required: 1. What is the financial advantage…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $315,000 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 Output A $ 13.00 per pound 11,600 pounds B $ 7.00 per pound 18,200 pounds с $ 19.00 per gallon 2,800 gallons 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 $ 17.40 per pound Product A $ 54,640 B $ 77,580 $ 12.40 per pound C $ 29,360 $ 26.40 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $380,000 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 QuarterlyOutput A $ 26.00 per pound 14,200 pounds B $ 20.00 per pound 22,100 pounds C $ 32.00 per gallon 5,400 gallons 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: Product AdditionalProcessing Costs SellingPrice A $ 86,490 $ 31.70 per pound B $ 125,095 $ 26.70 per pound C $ 57,700 $ 40.70 per gallon Required: 1. What is the financial…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $360,000 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 Output A $ 22.00 per pound 13,400 pounds B $ 16.00 per pound 20,900 pounds C $ 28.00 per gallon 4,600 gallons 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. Product Additional Processing Costs $ 75,970 Selling Price $ 27.30 per pound $ 22.30 per pound A B $ 109,395 C $ 48,260 $ 36.30 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing…