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Breakfast Time 12000

Price: $1.99


Breakfast time 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  $2.00
Crummies  8,000  $2.50

Required:
Use the physical-units method to allocate the company’s joint production cost between
Yummies and Crummies.

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