File Edit View History Bookmarks Window Help 1 D2L Economics Book Apple Philosop

Question

File Edit View History Bookmarks Window Help 1 D2L Economics Book Apple Philosophy Link Sports and Society connect UA Student Center Portal Marketing St...System SONA Busins Google Silides Connect er 12 Homework Assignment Exercise 12-7 Sell or Process Further Decisions [1012-7] Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the spilit-off point total $300,000 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 spit-off point. Unit selling prices and total output at the split-off point are as follows: Quarterly Output 11.090 pounds A 10.00 per pound 4.00 per pound 17,300 pounds C 16.00 P 2,200 gallone Each product can be processed further after the split-off point. Additional processing requires no special facilinies. The additional processing costs (per quarter) and unit selling prices after further processing are given below 8e11ing 14.10 per pound 055$3.10 Paz pound 23,780 23.10 per allon 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 enalysis in requirement 1, which product or products should be sold at the split-off point and which product or products shouild be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2

Explanation / Answer

calculation of profit on further processing 1 2 3 4 5 6 7 8 products selling price per unit after further processing output sale value ( 2 * 3 ) costs up to split off costs of further processing total cost ( 5 + 6 ) profit ( 4 - 7 ) a 14.1 11000 155100 153918 48250 202168 -47068 b 9.1 17300 157430 96828 68055 164883 -7453 c 23.1 2200 50820 49254 23780 73034 -22214 total 363350 300000 440085 as per the above analysis , both at sale at split off point and the further processing are losses to the company , the products are to sold at split off point and sold after further processing are product a and c shall be sold at split off point , other wise further processing them will increase the losses at the further process sale product b shall be further processed so that the loss at split off 27628 can be reduced to 7453 sale at further processing particulars product a product b product c sell at split off sell at split off sell at split off process further process further

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.