Refer to the data given in Exercise 18-20. Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs

$1.50 per kilogram, and the mulch will sell for $10.50 per kilogram.

Required:
1. Should Breakfasttime"s management decide to process Crummies into the mulch? Why?
2. Suppose the company does process Crummies into the mulch. Use the net-realizable-value method to allocate the joint production cost between the mulch and the Yummies.

Data From Exercise 18-20:-

Bay State Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows:

The budgeted costs in the two service departments for the year are as follows:

Transcribed Image Text:

Provider of Service Computing Services User of Service Library Library...... 20% Computing Services.. Liberal Arts... 60% 30% Sciences.. 40% 50%