Dorsey Company Manufactures Assignment

Our professional writers will address all you homework
requirements and provide a quality paper with guarantees of 100% plagiarism free.
We provide 24/7 customer Support.

Order Research Paper In a Few Clicks



Get my paper done

By clicking “Get my paper done”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related emails.

Dorsey Company Manufactures Assignment

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total of $315,000 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 Selling Price $ 13.00 per pound $ 7.00 per pound $ 19.00 per gallon Quarterly Output 11,600 pounds 18,200 pounds 2,800 gallons C 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 $54,640

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total of $315,000 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:

Top Universities

Product A B Selling Price $ 13.00 per pound $ 7.00 per pound $ 19.00 per gallon Quarterly Output 11,600 pounds 18,200 pounds 2,800 gallons C 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 $54,640 $77,580 $29, 360 Selling Price $17.40 per pound $12.40 per pound $26.40 per gallon Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter “disadvantages” as a negative value.) Product A Product B Product C Financial advantage (disadvantage) of further processing Required 1 Required 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? Product A Product B Product C Sell at the split-off point? Process further? Get Accounting homework help today