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Business, 25.07.2020 22:01 anaalashay
Exercise 12-7 Sell or Process Further Decisions [LO12-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $355,000 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 $ 21.00 per pound 13,200 pounds B $ 15.00 per pound 20,600 pounds C $ 27.00 per gallon 4,400 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 $ 73,440 $ 26.20 per pound B $ 105,620 $ 21.20 per pound C $ 46,000 $ 35.20 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point
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Exercise 12-7 Sell or Process Further Decisions [LO12-7] Dorsey Company manufactures three products...
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