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:

-
Based on the information presented, which of the products should be processed further?
A) Sweet Meats only.
B) Both Sweet Meats and Chocolate Delight.
C) Minty Wonders only.
D) Both Sweet Meats and Minty Wonders.

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:

-
Based on the information presented, which of the products should be processed further?

-
Based on the information presented, which of the products should be processed further?
A) Sweet Meats only. 
B) Both Sweet Meats and Chocolate Delight. 
C) Minty Wonders only. 
D) Both Sweet Meats and Minty Wonders.

Quizplus · Accepted Answer

The question suggests that both Sweet Meats and Chocolate Delight should be processed further, likely because they offer higher profitability or value when processed compared to being sold as is.

Delite Confectionary Company Produces Various Types of Candies