Question 37 (3 points) The Candy Factory manufactures healthy candy that it sells to consumers and groups in the marketplace. The business produces chocolate-covered cherries in a three- step process to develop the center of the cherries, coat the cherries in chocolate, and package the final product. The total cost to produce a pound of chocolate covered cherries is the sum of the cost per pound in each of the following processes: Candy Factory Chocolate Covered Cherry Process Cherry Center Chocolate Coating Process Process $2,500,000 $1,200,000 2,000,000 2,000,000 Total Cost Total cost Total pounds Total cost per pound Packaging Process $1,100,000 2,000,000 The managerial accountant reported that there is no Work in Process Inventory. Assuming that there is no work in process inventories, calculate the total cost per pound for each of the three processes listed above and the total cost to produce a pound of chocolate covered cherries. Explain why the cost in each process is important to the managerial accountant. Discuss at least three reasons why the cost in the process is important and how this cost is used at the company