Delite Confectionary Company Produces Various Types of Candies

question 38

Multiple Choice

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.

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Definitions:

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