Business, 12.08.2020 06:01 carlosbs71

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $345,000 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 Selling Price Quarterly OutputA$19.00per pound 12,800poundsB$13.00per pound 20,000poundsC$25.00per gallon 4,000gallonsEach product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:Product Additional Selling Processing Costs PriceA$ 68,500$24.00per poundB$ 98,250$19.00per poundC$ 41,600$33.00per gallonRequired: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?

Answers: 2

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Answers

Answer from: FriesAintHere1392

Answer and Explanation:

1. The computation of financial advantage (disadvantage) of further processing is shown below:-

Particulars Product A Product B Product C

Selling price after further

processing a 24.00 19.00 33.00

Selling price at the

split-off point b 19.00 13.00 25.00

Incremental revenue per

pound or gallon 5.00 6.00 8.00

(c = a - b)

Total quarterly output in

pounds or gallons d 12,800 20,000 4,000

Total incremental

revenue $64,000 $120,000 $32,000

(e = c × d)

Total incremental

processing costs f $68,500 $98,250 $41,600

Financial advantage (disadvantage)

of further

processing ($4,500) $21,750 ($9,600)

(g = e - f)

2. Product A and Product C will be sold at the split-off point

Therefore, Product B will be processed further

Answer from: Quest

a loan? that’s my guess, anywho.

Answer from: Quest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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