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42. A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased
42. A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $240,000, and the following quantities of product and sales revenues were produced.
Product | Pounds | Price per Pound | |||
Feed | 100,000 | $ | 0.90 | ||
Flour | 50,000 | 2.20 | |||
Starch | 20,000 | 1.00 | |||
How much of the $240,000 cost should be allocated to feed if the value basis is used? (Round your intermediate percentage to the nearest whole percent.)
Multiple Choice
$90,000.
$98,400.
$0.
$133,333.
$240,000.
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