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...
-
Access the Copyright Office Web site. Review Circular 21 relating to Classroom Guidelines and the definition of brevity. a. Would a teachers reproduction of a complete article of 2,000 words be...
-
Give two examples of what would be considered unethical involving competition and the ethical principles (see Chapter 1) that would be violated.
-
Target Corporation reported the following amounts (in millions) in a recent Form 10-K. - Total assets: \(\$ 44,553\) - Total liabilities: \(\$ 28,322\) - Total noncurrent liabilities: \(\$ 15,545\) -...
-
The intangible assets section of Cepeda Corporations balance sheet at December 31, 2012, is presented here. Patents ($60,000 cost less $6,000 amortization) ..... $54,000 Copyrights ($36,000 cost less...
-
Compare and contrast the benefits of the flexible budget vs the static budget . Identify which of the two types of budget works best for a manufacturing entity ? What works best for a service entity...
-
1. Based on what you read in this chapter, what would you have suggested Lisa and her team do first with respect to training, particularly in terms of the companys strategy? Why? 2. Have Lisa and the...
-
Find and develop the derivation of Planck's blackbody radiation equation
-
Find the radius of curvature for a fast electron with speed v = 2 x 107 m/s in (a) the Earth's magnetic field at the surface, and (b) in a 10 T magnetic field.
-
Direct Labor Actual Data: Units produced Direct Labor Standard Cost Data per 1 Unit Quantity Price 2 hrs $41/hr SHOW ALL COMPUTATIONS. 20 units 39 hrs; total cost $1560 Compute rate variance,...
-
State the business you are doing/using You should submit a written report identifying your great business idea and explaining its choice. The report should be about two double spaced typed pages. The...
-
How do banks manage interest rate risk, and what hedging strategies are commonly employed to mitigate these risks ?
-
Tyrene Products manufactures recreational equipment. The operating results for the most recent year for one of its products, a skateboard, are presented below. Sales Variable expenses Contribution...
-
A teacher reports that a student is refusing to complete in-class assignments, participate, or turn in homework. He is concerned that the student is likely to fail if she continues these behaviors....
-
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?
-
One mile is equal to \(1.60934 \mathrm{~km}\). Convert 200 miles to kilometers. Round off the answer to three decimal places.
-
It is known that 4 quarts equals 3.785 liters. If you have 25 quarts, how many liters do you have? Round off to three decimal places.
-
Rewrite the following as fractions: 1. \(4 \%\) 2. \(50 \%\)
Study smarter with the SolutionInn App