Business, 05.12.2019 07:31 lame3245

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:

product selling price quarterly
output
a $ 16 per pound 15,000 pounds
b $ 8 per pound 20,000 pounds
c $ 25 per gallon 4,000 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 $ 63,000 $ 20 per pound
b $ 80,000 $ 13 per pound
c $ 36,000 $ 32 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?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:00

You are attending college in the fall and you need to purchase a computer. you must finance the purchase because your parents will not purchase it for you, and you do not have the cash on hand to purchase it. in blank #1 determine which type of credit would you use to finance your purchase (installment, non-installment, or revolving credit). (2 points) in blank #2 defend your credit choice by explaining why your financing option is the best option for you. (2 points) in blank #3 explain why you selected that credit option over the other two options available. (2 points)

Answers: 3

Answer

Business, 23.06.2019 01:30

What is a market? a. a system that allows people or companies to buy and sell products and services b. the number of companies willing to manufacture a specific product c. the ability to buy production materials in large quantities and save on costs d. a product's ability to satisfy a consumer

Answers: 2

Answer

Business, 23.06.2019 03:20

Bathlinks corporation has a debt to assets ratio of 73%. this tells the user of bathlinks’s financial statements that a. bathlinks is getting a 27% return on its assets. b. there is a risk that bathlinks cannot pay its debts as they come due. c. 73% of the assets are financed by the stockholders. d. based on this measure, the user should not invest in bathlinks.

Answers: 3

Answer

Business, 23.06.2019 15:30

In its first year of operations, sunland company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. the remaining $21,900 was received in cash from customers. the company incurred operating expenses of $18,600. of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. in addition, sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. (a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.

Answers: 2

Answer

You know the right answer?

Dorsey company manufactures three products from a common input in a joint processing operation. join...

Questions