* A joint production process at Specialty Jams Farm results in two products, cherry jelly and...
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* A joint production process at Specialty Jams Farm results in two products, cherry jelly and cherry jam. The following cost and activity data relate to these two products Joint costs allocated Number of units produced from joint process Selling price at split-off point Selling price after processing further Cherry jelly Cherry jam $10,000 $12,000 2,300 $1.75 $2.00 O A $3,480 net decrease in operating income OB. $6,440 net increase in operating income OC. $3,480 net increase in operating income OD. $6,440 net decrease in operating income 2,300 $2.80 $5.40 Cost of processing further $2,500 $2,000 Cherry jelly can be sold as-is (at the split-off point) for $2.80 per unit, or it can be processed further into a specially cherry smoothie and then sold for $5.40 per unit. If cherry jelly is processed further into the specialty cherry smoothie, what would be the overall effect on operating income? * A joint production process at Specialty Jams Farm results in two products, cherry jelly and cherry jam. The following cost and activity data relate to these two products Joint costs allocated Number of units produced from joint process Selling price at split-off point Selling price after processing further Cherry jelly Cherry jam $10,000 $12,000 2,300 $1.75 $2.00 O A $3,480 net decrease in operating income OB. $6,440 net increase in operating income OC. $3,480 net increase in operating income OD. $6,440 net decrease in operating income 2,300 $2.80 $5.40 Cost of processing further $2,500 $2,000 Cherry jelly can be sold as-is (at the split-off point) for $2.80 per unit, or it can be processed further into a specially cherry smoothie and then sold for $5.40 per unit. If cherry jelly is processed further into the specialty cherry smoothie, what would be the overall effect on operating income?
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Option C is correct Situation 1 Operating loss Situation 2 Operati... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
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