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Dorsey Company manufactures three products from a common input in a joint processing operation, Joint...

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Accounting

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Dorsey Company manufactures three products from a common input in a joint processing operation, Joint processing costs up to the split-off point total $375,000 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: 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 pirces after further processing are given below: 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? Complete this question by entering your answers in the tabs below

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