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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