Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows Quantity at Split-off Point 12,700 kilograns 8,700 kilograns Sales Price per Kilogran 56.70 Joint Cost Cereal 597,000 Yummies Crumnies 8.20 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs The additional processing operation costs $2.20 per kilogram, and the mulch will sell for $14.00 per kilogram. 2. Suppose the company does process Crummies into the mulch Use the net-realizable-value method to allocate the joint production cost between the mulch and the Yummies. (Round intermediate calculations of "Relative Proportions" to 3 decimal places and final answers to the nearest dollar amount.)

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows Quantity at Split-off Point 12,700 kilograns 8,700 kilograns Sales Price per Kilogran 56.70 Joint Cost Cereal 597,000 Yummies Crumnies 8.20 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs The additional processing operation costs $2.20 per kilogram, and the mulch will sell for $14.00 per kilogram. 2. Suppose the company does process Crummies into the mulch Use the net-realizable-value method to allocate the joint production cost between the mulch and the Yummies. (Round intermediate calculations of "Relative Proportions" to 3 decimal places and final answers to the nearest dollar amount.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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