XYZ Chocolates manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate
Question:
XYZ Chocolates manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products:
- Chocolate powder liquor base
- Milk chocolate liquor base
These two intermediary products become separately identifiable at a single splitoff point. Every 500 kilograms of cocoa beans yields 20 four-litre containers of chocolate powder liquor base and 30 four-litre containers of milk chocolate liquor base.
The chocolate powder liquor base is further processed into chocolate powder. Every 20 containers of chocolate powder liquor base yields 200 kilograms of chocolate powder. The milk chocolate liquor base is further processed into milk chocolate. Every 30 containers of milk chocolate liquor base yields 340 kilograms of milk chocolate.
The following is an overview of the manufacturing operations at XYZ Chocolates:
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ