C"awExercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7]Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to thesplit-off point total $310,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products onthe basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:ProductABCProductABCCheck my work mode: This shows what is correct or incorrect for the work you have completed so faSelling Price$ 12.00 per pound$ 6.00 per pound$18.00 per gallonEach product can be processed further after the split-off point. Additional processing requires no special facilities. The additionalprocessing costs (per quarter) and unit selling prices after further processing are given below:AdditionalProcessingCosts$ 52,470$ 74,345$ 27,460Quarterly Output11,400 pounds17,900 pounds2,600 gallonsSelling Price$16.30 per pound$11.30 per pound$ 25.30 per 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 orproducts should be processed further?Required 1 Required 2Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?(Do not round your intermediate calculations. Enter "disadvantages" as a negative value.)Financial advantage (disadvantage) of further processingRequired 1Product A3,450$ProductB$20,525 $Required 2>Product8,480 X

Joint processes refer to the industrial production processes in which the production of one product…

Exercise 13-7 (Algo) Sell or Process Further Decisions [LO13-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $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 A B C Product 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: 38. B Selling Price $ 12.00 per pound $6.00 per pound $18.00 per gallon C Quarterly Output 11,400 pounds 17,900 pounds 2,600 gallons Additional Processing Costs $ 52,470 $ 74,345 $ 27,460 Selling Price $ 16.30 per pound $ 11.30 per pound $ 25.30 per gallon 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? Answer is complete but not entirely correct. ▸ 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? (Do not round your intermediate calculations. Enter "disadvantages" as a negative value.). Financial advantage (disadvantage) of further processing Product с 8,480 X

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 64P: Sell or Process Further, Basic Analysis Shenista Inc. produces four products (Alpha, Beta, Gamma,...