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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
B
C
Check my work mode: This shows what is correct or incorrect for the work you have completed so fa
Selling Price
$ 12.00 per pound
$ 6.00 per pound
$18.00 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
$ 52,470
$ 74,345
$ 27,460
Quarterly Output
11,400 pounds
17,900 pounds
2,600 gallons
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?
Required 1 Required 2
Answer 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 processing
Required 1
Product A
3,450
$
Product
B
$20,525 $
Required 2
>
Product
8,480 X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feeda91d6-95a1-4a36-adf8-3dfd4c57f9af%2F5faaa998-0671-4ac8-b05a-d6af4dd70f00%2Frpjlee8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:C
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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
B
C
Check my work mode: This shows what is correct or incorrect for the work you have completed so fa
Selling Price
$ 12.00 per pound
$ 6.00 per pound
$18.00 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
$ 52,470
$ 74,345
$ 27,460
Quarterly Output
11,400 pounds
17,900 pounds
2,600 gallons
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?
Required 1 Required 2
Answer 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 processing
Required 1
Product A
3,450
$
Product
B
$20,525 $
Required 2
>
Product
8,480 X
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