Business, 30.07.2019 18:10 soupsah8166

Dorsey company manufactures three products from a common input in a joint processing operation. joint processing costs up to the split-off point total $320,000 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 $ 14.00 per pound 11,800 pounds b $ 8.00 per pound 18,500 pounds c $ 20.00 per gallon 3,000 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 $ 56,850 $ 18.50 per pound b $ 80,875 $ 13.50 per pound c $ 31,300 $ 27.50 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?

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