Should Be Allocated To Products To Determine Whether They Are Sold At Split Off Or Processed Further Should Be Ignored 1 (17.68 KiB) Viewed 12 times
should be allocated to products to determine whether they are sold at split-off or processed further. should be ignored in determining whether to sell at split-off or process further. should be ignored in making all product decisions. are never included in product cost, as they are misleading to all management decisions.
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 $500,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below: Number of pounds 50,000 100,000 25,000 Candy type Sweet Meats Chocolate Delight Minty Wonders The joint processing costs in this operation: Price per pound at split-off $ 8 $ 10 $5 Further processing costs $ 75,000 $ 30,000 $ 20,000 Price after processing further $10.00 $10.50 $5.50
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