17-36 Joint-cost allocation. SW Flour Company buys whole wheat flour and mills it into Bread Flour and All-Purpose White Flour (APWF). In 2020, SW bought 300,000 pounds of whole wheat flour for $70,000. SW spent an additional $50,000 to process the whole wheat flour into Bread Flour and All-Purpose White Flour, so total joint costs equal $120,000. SW Flour Company reported the following production and sales information for 2020: Bread Flour APWF Production and sales (in 60,000 240,000 pounds) Selling price per pound $0.85 $0.50 SW can also put the All-Purpose White Flour through a second process and convert it into Cake Flour. This process costs an additional $50,000 but 20,000 pounds of flour are lost and thus yields only 220,000 pounds of Cake Flour. The Cake Flour sells for $1 per pound.