A granary allocates the cost of unprocessed wheat to the production of feed, flo
ID: 2570860 • Letter: A
Question
A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $360,000, and the following quantities of product and sales revenues were produced.
How much of the $360,000 cost should be allocated to feed? (Round your intermediate percentage to the nearest whole percent.)
A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $360,000, and the following quantities of product and sales revenues were produced.
Explanation / Answer
The correct answer is $ 202,475
Note :
Product Pounds Price per Pound Total Price( Pounds * Price Per Pound) Weight( Respective Price / Total Price) Cost to be Allocated ( Total Cost * Weight) Feed 100000 2 200000 0.56 202,475 Flour 49000 2.4 117600 0.33 119,055 Starch 19000 2 38000 0.11 38,470 355600 360,000