Managerial Accounting: E13-6 Dorsey Company manufactures three products

Managerial Accounting 
Exercise 13-6 Selling or Process Further 
Dorsey Company manufactures three products from a common input in a joint processing operation. 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 $16 per pound 15,000 pounds 
B $8 per pound 20,000 pounds 
C $25 per pound 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: 
Product Additional Processing Costs Selling Price 
A 63,000 $20 per pound 
B 80,000 $13 per pound 
C 36,000 $32 per gallon 

Required: 
Which product or products should be sold at the split-off point and which product or products should be processed further? Show computations
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