Delite Confectionary Company produces various types of candies. Several candies

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 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: Further processing costs $ 75,000 $ 30,000 $ 20,000 und at Price after processing further $10.00 $10.50 5.50 Price per po Candy type Number of pounds split-off Sweet Mats Chocolate Delight Minty Wonders 50,000 100,000 25,000 $ 10 The joint processing costs in this operation: O should be allocated to products to determine whether they are sold at split-off or processed further O should be ignored in determining whether to sell at split-off or process further O are never included in product cost, as they are misleading to all management decisions O should be ignored in making all product decisions

Explanation / Answer

(b) Should be ignored in determining whether to sell at split off or process further, that whether it will give further advantage or not at split off or at further processing.

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