Question
The Kaylee Store sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below. Refrigerator Full-size Freezer
The Kaylee Store sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.
| Refrigerator | Full-size Freezer | Packaged Price | |
| Selling price | $375 | $825 | $1,000 |
| Manufacturing cost per unit | $180 | $620 | |
| Stand-alone product revenues | $775,000 | $1,225,000 |
Using the stand-alone method with selling price as the weight for revenue allocation, what amount will be allocated to the refrigerator?
| A. | $312.50 | |
| B. | $612.50 | |
| C. | $387.50 | |
| D. | $687.50 |
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940
