Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

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Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows:

Joint Cost		Cereal	Quantity at Split-Off Point			Sales Price per Kilogram
$	34,000	Yummies		18,900	kilograms	$	3.00
		Crummies		8,100	kilograms		3.50

Required:

Use the physical-units method to allocate the company’s joint production cost between Yummies and Crummies. (Do not round intermediate calculations.)

	Allocation of Joint Cost
Yummies
Crummies

business accounting

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Answer 1

Answer #1

Total physical units = 18,900 + 8,100 = 27,000

Allocation of joint cost :-

Yummies = 34,000 x (18,900/27,000) = $23,800

Crummies = 34,000 x (8,100/27,000) = $10,200

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Answer 2

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Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is...

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