Help Dorsey Company manufactures three products from a common input i.docx - Help Dorsey Company manufactures three products from a common input in a

# Help Dorsey Company manufactures three products from a common input i.docx

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Help Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total \$305,000 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 Selling Price \$ 11.00 per pound \$ 5.00 per pound \$ 17.00 per gallon Quarterly Output 11,200 pounds 17,600 pounds 2,400 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 \$50, 340 \$71, 170 \$25,600 Selling Price \$15.20 per pound \$10.20 per pound \$24.20 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

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