Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 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 A $ 16 per pound BS B per pound C$ 25 per gallon Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons 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. Selling Product Additional Processing Costs $63,000 $80,000 Price A $20 per pound $13 per pound C $36,000 $32 per gallon 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. 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 B Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 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 split-off point? Process further? Required 2 < Required 1 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 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 A $ 16 per pound BS B per pound C$ 25 per gallon Quarterly Output 15,000 pounds 20,000 pounds 4,000 gallons 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. Selling Product Additional Processing Costs $63,000 $80,000 Price A $20 per pound $13 per pound C $36,000 $32 per gallon 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. 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 B Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 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 split-off point? Process further? Required 2 < Required 1
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
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...
-
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. The company allocates...
-
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. The company allocates...
-
How do researchers investigate the effectiveness of the integrated reporting initiative?
-
During its first year of operations, Williams Plumbing Supply Co. had net sales of $6,500,000, wrote off $40,000 of accounts as uncollectible using the direct write-off method, and reported net...
-
Can you think of some types of workers whose marginal products probably were raised by computerization? Are there any whose marginal products were probably reduced? Can you characterize the...
-
The November cash records of Stenback, Inc., follow: Stenbacks Cash account shows the balance of $6,172 on November 30. On November 30, Stenback received the following bank statement: Additional data...
-
(1) Prompt the user to input an integer, a double, a character, and a string, storing each into separate variables. Then, output those four values on a single line separated by a space. Note: This...
-
2. [-/19 Points] DETAILS LCALCCON5 3.5.003. MY NOTES Let h(t) be the number of households in a city, and let c(t) be the proportion (expressed as a decimal) of households in that city that have...
-
Glenrose Servicing began operations on June 1, 2020. The transactions for the first two months follow: Required 1. Create two tables like the one in Exhibit 1.15 for each of June and July using the...
-
Go to the given link and watch the video. In this interview (https://www.psychologytoday.com/blog/functioning-flourishing/201801/are-you-tougher-you-think), Emilia Lahti offers five specific actions...
-
Compare and contrast publicity and public relations and identify global companies that have recently been impacted by negative publicity.
-
In what ways is cultural consideration an important element in global marketing communication?
-
Define convergence and give an example.
-
Explain the relationship between supply chain and logistics management.
-
Identify current trends in global e-commerce and explain how global companies are expanding their presence on the Web.
-
2 What determines if an employee is paid as an hourly, salaried, or executive-level employee? Select the correct answer from the following choices. a) length of service b) the work they do assessed...
-
Find the volume of the described solid S. A frustum of a right circular cone with height h, lower base radius R, and top radius r -r- --R
-
Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs. The company closes its under applied or over applied overhead to cost of goods sold. Its balance sheet on...
-
Music Teachers, Inc., is an educational association for music teachers that has 20,000 members. The association operates from a central headquarters but has local membership chapters throughout the...
-
Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plant wide overhead rate based on direct labor-hours. It is considering...
-
Financial statement data of HiFlite Electronics Limited include the following items (dollars in thousands): {Requirements} 1. Compute HiFlite's current ratio, debt ratio, and earnings per share. Use...
-
Comparative financial statement data of Panfield Optical Mart follow: Other information: 1. Market price of Panfield common stock: \(\$ 94.38\) at December 31, 2020; and \(\$ 85.67\) at December 31,...
-
Assume that you are purchasing an investment and have decided to invest in a company in the publishing business. You have narrowed the choice to Thrifty Nickel Corp. and The Village Cryer Limited and...
Study smarter with the SolutionInn App