Question
The American Produce Company purchased a truckload of cantaloupes (weighing 3,700 pounds) for $910. American Produce separated the cantaloupes into two grades: superior and economy.
The American Produce Company purchased a truckload of cantaloupes (weighing 3,700 pounds) for $910. American Produce separated the cantaloupes into two grades: superior and economy. The superior-grade cantaloupes had a total weight of 2,960 pounds, and the economy-grade cantaloupes totaled 740 pounds. American Produce sells the superior-grade cantaloupes at $0.53 per pound, and the economy-grade ones at $0.22 per pound. Allocate the $910 cost of the truckload to the superior-grade and economy-grade cantaloupes using the physical quantity method and the relative sales value method. (Round answers to 0 decimal places, e.g. 125. Round intermediate calculations to 4 decimal places, e.g. 0.5645.)
Cost using physical Cost using relative sales value method
quantity method
Superior grade $ $ Economy grade $ $
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