Question
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
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 $690,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below:
| Candy type | Number of pounds | Price per pound at split-off | Further processing costs | Price after processing further | ||||||
| Sweet Meats | 69,000 | $ | 9 | $ | 94,000 | $ | 11.00 | |||
| Chocolate Delight | 119,000 | $ | 11 | $ | 49,000 | $ | 11.50 | |||
| Minty Wonders | 44,000 | $ | 6 | $ | 29,000 | $ | 6.50 | |||
If Chocolate Delight is processed further, the gross profit margin that will appear in a product line income statement for Chocolate Delight (rounded to the nearest whole dollar) would be:
a. 965578
b. 719000
c. 844796
d. 1319500
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Cost Accounting
Authors: James A. Cashin, Ralph S. Polimeni, Sheila Handy
3rd Edition
0070110263, 9780070110267
