Question
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
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 $177,600, and the following quantities of product and sales revenues were produced.
| Product | Sales Value |
|---|---|
| Feed | $ 103,600 |
| Flour | 162,800 |
| Starch | 29,600 |
| Total | $ 296,000 |
How much of the $177,600 cost should be allocated to flour if the value basis is used?
Multiple Choice
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$36,260.
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$103,600.
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$97,680.
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$296,000.
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$124,320.
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
