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.

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