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Will be usinExercise 13-7(Algo) Sell or Process Further Decisions [LO13-7] Dorsey Company manufactures three...

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Accounting

Will be usinExercise 13-7(Algo) Sell or Process Further Decisions [LO13-7]
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the
split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products
based on 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 prices after further processing are given below:
Required:
What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?
Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which should be
processed further?
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