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Hi can someone please explain how to do part 17-22 and why they should or should not use the crummies in the mulch (I apologize

Hi can someone please explain how to do part 17-22 and why they should or should not use the crummies in the mulch (I apologize for the poor image)? image text in transcribed
Exercise 17-20 Physical-Units Method: Joint Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity Cost Allocation LO 4) information is as follows Joint Cost Cereal Yummies Caum ries .. Sales Price per Kilogranm $2.00 2.50 Quantity at Split-Off Point $30,000 12,000 klogr 8,000 klogas Required: Use the physical-units method to allocate the company's joint production cost between Yummies and Crummics. Exercise 17-21 Relatve-Sales-Valkue Method: Refer to the data given in the preceding exercise. Joint Cost Allocation (LO 4) Required: Use the relative-sales-value method to allocate Breakfasttime Cereal Company's joint production cost between Yummies and Crummies. Exercise 17-22 Net-Realtzable-Value Method: Refer to the data given in Exercise 17-20. Breakfasttime Cereal Company has an opportunity to process Joint Cost Allocation (LO 4) its Crummies further into a mulch for onamental shrubs. The additional processing operation costs $.50 per kilogram, and the mulch will sell for $3.50 per kilogram. Chapter 17 Allocation of Support Activity Costs and Joint Costs 759 Required 1. Should Breakfasttime's management decide to process Crummies into the mulch? Why? 2. Suppose the company does process Crummies into the mulch. Use the net-realizable-value method to allocate the joint production cost between the mulch and the Yummies

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