Mahere Cereals 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 $ 43,000 Yummies 15,900 kilograms $ 3.30 Crummies 10,600 kilograms 3.80 Required: Use the relative-sales-value method to allocate Mahere Cereals joint production cost between Yummies and Crummies. Note: Round intermediate calculations of Relative Proportions to 3 decimal places and final answers to the nearest dollar amount. Sakes value at split off point Allocation of joint costs Yummies Crummies Total
Mahere Cereals 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 $ 43,000 Yummies 15,900 kilograms $ 3.30 Crummies 10,600 kilograms 3.80 Required: Use the relative-sales-value method to allocate Mahere Cereals joint production cost between Yummies and Crummies. Note: Round intermediate calculations of Relative Proportions to 3 decimal places and final answers to the nearest dollar amount. Sakes value at split off point Allocation of joint costs Yummies Crummies Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mahere Cereals 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 | |
|---|---|---|---|---|
| $ 43,000 | Yummies | 15,900 | kilograms | $ 3.30 |
| Crummies | 10,600 | kilograms | 3.80 |
Required:
Use the relative-sales-value method to allocate Mahere Cereals joint production cost between Yummies and Crummies.
Note: Round intermediate calculations of Relative Proportions to 3 decimal places and final answers to the nearest dollar amount.
| Sakes value at split off point | Allocation of joint costs | |
| Yummies | ||
| Crummies | ||
| Total |
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