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Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Quantity at Sales Price Joint Cost Cereal
Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows:
Quantity at | Sales Price | ||||||||
Joint Cost | Cereal | Split-Off Point | per Kilogram | ||||||
$ | 30,000 | Yummies | 12,000 | kilograms | $ | 2.00 | |||
Crummies | 8,000 | kilograms | 2.50 | ||||||
Required: Use the relative-sales-value method to allocate Breakfasttime Cereal Companys joint production cost between Yummies and Crummies. (Round intermediate calculations of Relative Proportions to 3 decimal places and final answers to the nearest dollar amount.)
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