If the joint cost is allocated on the basis of NRV, the allocated costs per 1,000 pounds of milk for Cheese and Milky is

Chedar Cheese Company produces natural cheese from cow's milk. As a result of the process, a secondary product Milky is produced in the proportion of one pound for each pound of cheese. The following are the standards for 1,000 of milk. Input: 1,000 pounds of milk at P.20/pound 40 hours of labor at P10.00 per hour Overhead is applied equal to 100% of DL costs Output: 450 pounds of Cheese 450 pounds of Milky The following prices and demand are expected: Price per pound Demand in pounds Cheese P2.00 450 Milky .80 375