Great Sweets Candy 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:
Candy type - Sweet Meats- # of pounds 50,000, Price per pound a split off $ 8.00 -
Further processing Cost 75,000, price after processing $10.00
Candy type - Sweet Meats- # of pounds 100,000, Price per pound a split off $ 10.00 -
Further processing Cost 30,000, price after processing $10.50
Candy type - Sweet Meats- # of pounds 25,000, Price per pound a split off $ 5.00 -
Further processing Cost 20,000, price after processing $5.50