Managerial Accounting
E17-20
Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows:
Joint Cost Cereal Quantity atSplit-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.
