Crunch-Time Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information follows: Required:
Question:
Crunch-Time Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information follows:
![Sales price per kilogram Quantity at split-off point Cereal Joint Cost 12 000 kilograms 8 000 kilograms $6.00 Yummies $1](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images15/1337-B-A-A-F-V-M(622).png)
Required:
Use the following methods to allocate the company's joint production cost between Yummies and Crummies:
1. The physical units method.
2. The relative sales value method.
3. The constant gross margin method.
Transcribed Image Text:
Sales price per kilogram Quantity at split-off point Cereal Joint Cost 12 000 kilograms 8 000 kilograms $6.00 Yummies $120 000 $7.50 Crummies
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Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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