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 $385,000 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 С Selling Price $ 27.00 per pound $21.00 per pound $ 33.00 per gallon Product A B 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: Quarterly Output 14,400 pounds 22,400 pounds 5,600 gallons Additional Processing Conta $ 89,220 $129,170 $ 60,160 Selling Price $32.80 per pound $27.80 per pound $41.80 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? Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $385,000 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 С Selling Price $ 27.00 per pound $21.00 per pound $ 33.00 per gallon Product A B 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: Quarterly Output 14,400 pounds 22,400 pounds 5,600 gallons Additional Processing Conta $ 89,220 $129,170 $ 60,160 Selling Price $32.80 per pound $27.80 per pound $41.80 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?
Expert Answer:
Answer rating: 100% (QA)
I Financial Particular Profit before further Processing A 8 C 2 Product A and C broduct b sales valu... View the full 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...
-
The following is a sufficient condition, the Laplace-Liapounoff condition, for the central limit theorem: If X 1 , X 2 , X 3 , . . . is a sequence of independent random variables, each having an...
-
Use the chi-square contingency analysis to test to determine whether variable 1 is independent of variable 2. Use 5% level ofsignificance. Variable 2 12 23 21 7 18 Variable 817 20
-
A study by InsuranceQuotes.com found that homeowners with poor credit pay 91% more for home insurance than people with excellent credit. (a) A quote in the article stated, "Insurers have found a...
-
Hillcrest Corporation reported the following accounts: Prepare the stockholders' equity section of the Hillcrest balance sheet. Cost of goods sold $58.800 Accounts payable $ 6.000 Paid-in capital in...
-
Andrews Company manufactures a line of office chairs. Each chair takes $ 14 of direct materials and uses 1.9 direct labor hours at $ 16 per direct labor hour. The variable overhead rate is $ 1.20 per...
-
In 2024, the Marion Company purchased land containing a mineral mine for $1,850,000. Additional costs of $745,000 were incurred to develop the mine. Geologists estimated that 450,000 tons of ore...
-
In a typical month, the Monk Corporation receives 80 checks totaling $113,000. These are delayed four days on average. What is the average daily float? Assume 30 days in a month.
-
You are the junior financial analyst in Impact Resource Sdn Bhd, a company that produce a line of cosmetic products. Your boss requested you to perform a capital budgeting analysis and evaluate the...
-
One remedy for procedural violations is to have a hearing officer or court order the school to comply with procedural requirements in the future. What should the remedy be if the school still...
-
What are the pitfalls to avoid when implementing a balanced scorecard?
-
One of the key discipline requirements in the IDEA is that students with disabilities must be provided with FAPE, even when they are suspended or expelled from school for reasons unrelated to their...
-
As noted in this chapter, students with disabilities receive a number of protections in the discipline process. These same protections are not available to students without disabilities (unless the...
-
Describe the features of a good balanced scorecard.
-
This program is designed to provide a matcher that compares strings ending in sequences of digits in a way that makes sense to a human. Explain step by step what was developed in the...
-
Chris Zulliger was a chef at the Plaza Restaurant in the Snowbird Ski Resort in Utah. The restaurant is located at the base of a mountain. As a chef for the Plaza, Zulliger was instructed by his...
-
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company's manufacturing overhead cost is applied to production...
-
Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavezs business is seasonal, with a heavy schedule during the summer months and holidays and a...
-
What is the difference between a contribution approach income statement and a traditional approach income statement?
-
For the sales adjustment transaction class, indicate the three main types of transaction that might occur. For each transaction type, indicate one question that might be used in an internal control...
-
For each of the three functions pertaining to cash receipts transactions, formulate two questions that may be used in preparing an internal control questionnaire for this transaction class.
-
What are some of the inherent risk factors that may affect (1) sales transactions and (2) debtors balances?
Study smarter with the SolutionInn App