AccountingDelite Confectionary Company produces varioustypes of candies. Several candies could be soldat the split-off point or processed further andsold in a different form after further processing.The candies are produced in a joint processingoperation with $590,000 of joint processingcosts monthly, which are allocated based onpounds produced. Information concerning thisprocess for a recent month appears below:Candy typeSweet MeatsChocolateDelightMintyWondersNumber ofpounds59,000109,00034,000Price perpound atsplit-off$8$10$5If Chocolate Delight is processed further, thegross profit margin that will appear in a productline income statement for Chocolate Delightwould be:Note: Do not round intermediate calculations.Multiple Choice$1,127,300.$808,934.$697,974.$619,000.Furtherprocessingcosts$ 84,000$ 39,000$ 29,000Price afterprocessingfurther$ 10.00$ 10.70$ 5.50

Answered: If Chocolate Delight is processed…

If Chocolate Delight is processed further, the gross profit margin that will appear in a product line income statement for Chocolate Delight would be: Note: Do not round intermediate calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Accounting
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
Price per
pound at
split-off
$8
$10
$5
If Chocolate Delight is processed further, the
gross profit margin that will appear in a product
line income statement for Chocolate Delight
would be:
Note: Do not round intermediate calculations.
Multiple Choice
$1,127,300.
$808,934.
$697,974.
$619,000.
Further
processing
costs
$ 84,000
$ 39,000
$ 29,000
Price after
processing
further
$ 10.00
$ 10.70
$ 5.50

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