XYZ prepares batter to produce chocolate chip cookies and raisin cookies.

Batter costs $85000 in each batch.

The process using batter produces 65000 chocolate chip cookies with a market value of $35000

The process using batter produces 20000 raisin cookies with a market value of $135000.

Costs incurred in operating in the baking machine is $88000

Costs of batter and operating the baking machine are allocated on the basis of units of output then what cost would be assigned to each product?

Costs of batter and operating the baking machine are allocated on the basis of net realizable value then what cost would be assigned to each product?

How can we determine whether chocolate chip cookies or raising cookies were more profitable for the company?