The Sweete Shoppe produces a variety of sweet treats. Several treats can be sold at split-off or further processed to produce a different type of treat. The following three treats are all produced in a joint processing operation at a cost of $63,000. The costs are allocated based on pounds produced. Information for these treats is as follows: If Processed Further Product Pounds (lb) Produced Price per lb. at Split-Off Final price per unit Further Processing Costs Berry Delight 63,000 $8.00 $10.00 $88,000 Chocolate Wonder 113,000 10.00 10.50 43,000 Caramel Chip 38,000 5.00 5.60 33,000 The net increase or decrease in profits of processing Caramel Chip further is Question options: a) an increase of $21,387. b) a decrease of $10,200. c) a decrease of $21,387. d) an increase of $10,200.

The Sweete Shoppe produces a variety of sweet treats. Several treats can be sold at split-off or further processed to produce a different type of treat. The following three treats are all produced in a joint processing operation at a cost of $63,000. The costs are allocated based on pounds produced. Information for these treats is as follows: If Processed Further Product Pounds (lb) Produced Price per lb. at Split-Off Final price per unit Further Processing Costs Berry Delight 63,000 $8.00 $10.00 $88,000 Chocolate Wonder 113,000 10.00 10.50 43,000 Caramel Chip 38,000 5.00 5.60 33,000 The net increase or decrease in profits of processing Caramel Chip further is Question options: a) an increase of $21,387. b) a decrease of $10,200. c) a decrease of $21,387. d) an increase of $10,200.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 6BE

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			If Processed Further
Product	Pounds (lb) Produced	Price per lb. at Split-Off	Final price per unit	Further Processing Costs
Berry Delight	63,000	$8.00	$10.00	$88,000
Chocolate Wonder	113,000	10.00	10.50	43,000
Caramel Chip	38,000	5.00	5.60	33,000