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 $335,000 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: Quarterly Output Product Selling Price A $ 17.00 per pound 12,400 pounds B $ 11.00 per pound 19,400 pounds C $ 23.00 per gallon 3,600 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: Additional Processing Product Costs Selling Price A $ 63,720 $ 21.80 per pound B $ 91,120 $ 16.80 per pound C $ 37,360 $ 30.80 per gallon S 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? Note: Do not round your intermediate calculations. Enter "disadvantages" as a negative value. Product A Product B Product C Financial advantage (disadvantage) of further processing Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $335,000 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: Quarterly Output Product Selling Price A $ 17.00 per pound 12,400 pounds B $ 11.00 per pound 19,400 pounds C $ 23.00 per gallon 3,600 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: Additional Processing Product Costs Selling Price A $ 63,720 $ 21.80 per pound B $ 91,120 $ 16.80 per pound C $ 37,360 $ 30.80 per gallon S 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? Note: Do not round your intermediate calculations. Enter "disadvantages" as a negative value. Product A Product B Product C Financial advantage (disadvantage) of further processing
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
-
Q1. Lett be a parameter. For which values of t does the system of equations have 4(t + 4)x+ 21y = 56 12x + 3ty = 24 exactly one solution, no solution, or infinitely many solutions?
-
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...
-
A contract is started on 1 January 2015, with an estimated completion date of 31 December 2016. The final contract price is $1,500,000. In the first year, to 31 December 2015: Costs incurred...
-
Identify what is being oxidized and reduced in this redox reaction by assigning oxidation numbers to the atoms. 2NO + Cl2 ( 2NOCl
-
You have run a regression of EV/Invested Capital across all steel companies and arrived at the following result: EV/Invested Capital = 5.00 + 40.00 (Return on Invested Capital) -10.00 (Reinvestment...
-
A horizontal semitransparent plate is uniformly irradiated from above and below, while air at \(T_{\infty}=310 \mathrm{~K}\) flows over the top and bottom surfaces, providing a uniform convection...
-
The following information is available for Dunworth Canoes, a company that builds inexpensive aluminum canoes: In its first year of operation, the company produced 18,000 units but was able to sell...
-
Copy and paste the SelectionSortTester code from our lesson into BlueJ public class SelectionSortTester { // Sort the Array // public static void selectionSort( int[] array ) { // Find the integer...
-
A process is composed of five resources working on products A, B, and C for eight hours a day. The table below summarizes the situation. You would need to choose a minute of work as the common flow...
-
Subset the data to select only those individuals who lived in an urban area. Reduce the dimensionality of the data by converting numerical variables such as age, height, weight, number of years of...
-
Ricardian equivalence and fiscal policy First consider an economy in which Ricardian equivalence does not hold. a. Suppose the government starts with a balanced budget. Then, there is an increase in...
-
Subset the data to include only the employees who work in the hardware division and have a college degree. Reduce the dimensionality of the data by converting numerical variables such as age, years...
-
An airline company is going through a major cost reduction effort that involves reducing the number of flights by 20%, increasing fuel efficiency by 5%, and offering to 10% of the pilots and flight...
-
Consider first the goods market model with constant investment. Consumption is given by a. Solve for equilibrium output. What is the value of the multiplier for a change in autonomous spending? Now...
-
a. What is the relationship among corporate-level, business-level, and functional-level strategies and how do they create value for an organization? b. What is organizational learning and how can...
-
Information graphics, also called infographics, are wildly popular, especially in online environments. Why do you think infographics continue to receive so much attention? How could infographics be...
-
A 1 horsepower motor is connected to 120 V, 60 Hz AC source and has a pf = 0.80 (lagging) and an efficiency of 0.90. A capacitor is connected in parallel with the motor in order to correct its pf to...
-
For a single-phase circuit served by an AC power source: (a) Determine the total impedance at 60 Hz of a circuit consisting of a 0.25 H inductor with a 100 resistance and a 50 F capacitor, all...
-
A 5 A current flows when a neon lighting fixture is supplied by a 120 V power source. If the current lags the voltage by 75, determine the power factor and the real power consumed by the fixture.
Study smarter with the SolutionInn App