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Business, 17.08.2019 22:20 Serenitybella

Dorsey company manufactures three products from a common input in a joint processing operation. joint processing costs up to the split-off point total $385,000 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 quarterlyoutputa $ 27.00 per pound 14,400 poundsb $ 21.00 per pound 22,400 poundsc $ 33.00 per gallon 5,600 gallonseach 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 sellingpricea $ 89,220 $ 32.80 per poundb $ 129,170 $ 27.80 per poundc $ 60,160 $ 41.80 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 or products should be processed further?

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