Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different form after further processing. The candies are produced in a joint processing operation with $590,000 of joint processing costs monthly, whil are allocated based on pounds produced. Information concerning this process for a recent month appears below: Candy type Sweet Meats Chocolate Delight Minty Wonders Number of pounds 59,000 109,000 34,000 Multiple Choice Sweet Meats only Price per pound at split-off $8 $ 10 SS Both Sweet Mests and Chocolate Delight Minty Wonders only Based on the information presented, which of the products should be processed further? Further processing costs $ 84,000 Both Sweet Mests and Minty Wonders $ 39,000 $ 29,000 Price after processing further $ 10.00 $ 10.70 $ 5.50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different form after further processing. The candies are produced in a joint processing operation with $590,000 of joint processing costs monthly, which
are allocated based on pounds produced. Information concerning this process for a recent month appears below:
Candy type
Sweet Meats
Chocolate Delight
Minty Wonders
Number of
pounds
59,000
109,000
34,000
Multiple Choice
Sweet Meats only
Price per
pound at
split-off
$8
$ 10
$ 5
Based on the information presented, which of the products should be processed further?
Both Sweet Meats and Chocolate Delight
Minty Wonders only
Further
processing
costs
$ 84,000
$ 39,000
$ 29,000
Both Sweet Meats and Minty Wonders
Price after
processing
further
$10.00
$10.70
$ 5.50
Transcribed Image Text:Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different form after further processing. The candies are produced in a joint processing operation with $590,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below: Candy type Sweet Meats Chocolate Delight Minty Wonders Number of pounds 59,000 109,000 34,000 Multiple Choice Sweet Meats only Price per pound at split-off $8 $ 10 $ 5 Based on the information presented, which of the products should be processed further? Both Sweet Meats and Chocolate Delight Minty Wonders only Further processing costs $ 84,000 $ 39,000 $ 29,000 Both Sweet Meats and Minty Wonders Price after processing further $10.00 $10.70 $ 5.50
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