(Solved):Dorsey Company manufactures three products from a common input in a joint processing operation….

 

Question

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $96,000 per quarter. 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 Output
A $5 per pound 12,000 pounds
B $5 per

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