Question
A business allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for
A business allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $145,200, and the following quantities of product and sales revenues were produced.
ProductSales ValueFeed$ 84,700Flour133,100Starch24,200Total$ 242,000How much of the $145,200 cost should be allocated to flour if the value basis is used?
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Financial Accounting And Reporting
Authors: Barry Elliott, Jamie Elliott
5th Edition
0273651560, 978-0273651567
