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:
The net advantage (disadvantage)of processing Sweet Meats further is:
A) a $25,000 disadvantage to process further.
B) a $32,143 advantage to process further.
C) a $25,000 advantage to process further.
D) a $282,143 disadvantage to process further.

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: 
The net advantage (disadvantage)of processing Sweet Meats further is:
A) a $25,000 disadvantage to process further. 
B) a $32,143 advantage to process further. 
C) a $25,000 advantage to process further. 
D) a $282,143 disadvantage to process further.

Quizplus · Accepted Answer

The Answer of 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: 
The net advantage (disadvantage)of processing Sweet Meats further is:
A) a $25,000 disadvantage to process further. 
B) a $32,143 advantage to process further. 
C) a $25,000 advantage to process further. 
D) a $282,143 disadvantage to process further.

Delite Confectionary Company Produces Various Types of Candies