ACCT 3420 - Assignment - Week 10/11 company processes fermented cocoa beans usks. The cost to purchase, ferment a butter. The dried pod husks are a QUESTION C: Joint Product and By-Product Costing (8 marks) The Cocoa Division of BonBon Chocolate Company processes. into refined cocoa, cocoa butter and dried pod husks. The cost to pur! process the cocoa beans is $75,000. The net realizable value of the joint prou are; $85,000 for refined cocoa and $60.000 for cocoa butter. The dried pod nu by-product used for cattle feed with a net realizable value of $5,000. All the le cocoa and cocoa butter has been sold; however, none of the dried pod husks have in the current year. W. Wonka, the manager of the Cocoa Division receives an annual bonus which is a percentage of profits for the current year. He wants to maximize his bonus for the current year as he plans on taking a job with the competition in the coming year. Required: Which treatment of by product costing (Sales or Production Method) would W. Wonka prefer? Provide calculations to support your decision and explain why the method you chose achieves this. (4 marks) 5 l Page ACCT 3420 - Assignment - Week 10/11 company processes fermented cocoa beans usks. The cost to purchase, ferment a butter. The dried pod husks are a QUESTION C: Joint Product and By-Product Costing (8 marks) The Cocoa Division of BonBon Chocolate Company processes. into refined cocoa, cocoa butter and dried pod husks. The cost to pur! process the cocoa beans is $75,000. The net realizable value of the joint prou are; $85,000 for refined cocoa and $60.000 for cocoa butter. The dried pod nu by-product used for cattle feed with a net realizable value of $5,000. All the le cocoa and cocoa butter has been sold; however, none of the dried pod husks have in the current year. W. Wonka, the manager of the Cocoa Division receives an annual bonus which is a percentage of profits for the current year. He wants to maximize his bonus for the current year as he plans on taking a job with the competition in the coming year. Required: Which treatment of by product costing (Sales or Production Method) would W. Wonka prefer? Provide calculations to support your decision and explain why the method you chose achieves this. (4 marks) 5 l Page