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Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process Cost and quantityinformation is as follows Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantityinformation is as follows:Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram$30,000 Yummies ………………… 12,000 kilograms ………………………………. $2.00Crummies ……………….. 8,000 kilograms ………………………………. 2.50Required: Use the physical-units method to allocate the company’s joint production cost betweenYummies and Crummies. Refer to the data given in the preceding exercise.Required: Use the relative-sales-value method to allocate Breakfasttime Cereal Company’s joint productioncost between Yummies and Crummies. production Refer to the data given in Exercise 17–20 . Breakfasttime Cereal Company has an opportunity to processits Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $.50per kilogram, and the mulch will sell for $3.50 per kilogram. 1. Should Breakfasttime’s management decide to process Crummies into the mulch? Why? 2. Suppose the company does process Crummies into the mulch. Use the net-realizable-value methodto allocate the joint production cost between the mulch and the Yummies.

Jun 24 2020 View more View Less

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