A dairy allocates the cost of unprocessed milk to the production of milk,cream,butter and cheese.For the current period,unprocessed milk was purchased for $240,000,and the following quantities of product and sales revenues were produced. How much of the $240,000 cost should be allocated to milk?
A)$ 0.
B)$ 86,400.
C)$ 90,000.
D)$133,333.
E)$240,000.

Question

A dairy allocates the cost of unprocessed milk to the production of milk,cream,butter and cheese.For the current period,unprocessed milk was purchased for $240,000,and the following quantities of product and sales revenues were produced.  How much of the $240,000 cost should be allocated to milk?
A)$ 0. 
B)$ 86,400. 
C)$ 90,000. 
D)$133,333. 
E)$240,000.

Quizplus · Accepted Answer

11ea7277_eda1_7f4d_9608_498c5645e101_TB2411_00 Milk: 36% * $240,000 = $86,400

A Dairy Allocates the Cost of Unprocessed Milk to the Production