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?

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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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 $395,000 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 A Selling Price $29.00 per pound $23.00 per pound Quarterly Output 14,800 pounds B 23,000 pounds C $ 35.00 per gallon 6,000 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 A Additional Processing Costs $ 94,800 Selling Price $ 35.00 per pound $ 30.00 per pound B $ 137,500 C $ 65,200 $ 44.00 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $330,000 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 A B с Selling Price $16.00 per pound $ 10.00 per pound $22.00 per gallon Product A B 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 $ 61,390 $ 87,645 $ 35,300 Quarterly Output 12,200 pounds 19,100 pounds 3,400 gallons Required 1 Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on…
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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 $315,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products ob 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 $ 13.00 per pound $ 7.00 per pound $ 19.00 per gallon Product Quarterly Output 11,600 pounds 18,200 pounds 2,800 gallons A 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 Selling Price $ 17.40 per pound $ 12.40 per pound $ 26.40 per gallon Product Costs $ 54,640 $ 77,580 $ 29,360 A Required: 1. What is the financial advantage (disadvantage) of further processing each of…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $355,000 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 A a С Selling Price $ 21.00 per pound $15.00 per pound $27.00 per gallon Product A D 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 Costa $ 73,440 Quarterly Output 13,200 pounds 20,600 pounds 4,400 gallons $ 105,620 $ 46,000 Selling Price $26.20 per pound $ 21.20 per pound $35.20 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $365,000 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 A B C Selling Price $23.00 per pound $17.00 per pound $29.00 per gallon Product A B 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 $78,540 $ 113,230 $50,560 Quarterly Output 13,600 pounds 21,200 pounds 4,800 gallons 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…
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