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 |
|
$30,000 |
Yummies |
12,000 kilograms |
$2.00 |
|
Crummies |
8,000 kilograms |
$2.50 |
Required:
Use the physical-units method to allocate the company’s joint production cost between Yummies and Crummies.