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 joint processing costs in this operation:
A) should be allocated to products to determine whether they are sold at split-off or processed further.
B) should be ignored in determining whether to sell at split-off or process further.
C) should be ignored in making all product decisions.
D) are never included in product cost,as they are misleading to all management decisions.

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 joint processing costs in this operation:
A) should be allocated to products to determine whether they are sold at split-off or processed further. 
B) should be ignored in determining whether to sell at split-off or process further. 
C) should be ignored in making all product decisions. 
D) are never included in product cost,as they are misleading to all management decisions.

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 joint processing costs in this operation:
A) should be allocated to products to determine whether they are sold at split-off or processed further. 
B) should be ignored in determining whether to sell at split-off or process further. 
C) should be ignored in making all product decisions. 
D) are never included in product cost,as they are misleading to all management decisions.

Delite Confectionary Company Produces Various Types of Candies