The American Produce Company purchased a truckload of cantaloupes (weighing 4,000 pounds) for $900. American Produce separated

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The American Produce Company purchased a truckload of cantaloupes (weighing 4,000 pounds) for $900. American Produce separated the cantaloupes into two grades: superior and economy. The superior-grade cantaloupes had a total weight of 3,200 pounds, and the economy-grade cantaloupes totaled 800 pounds. American Produce sells the superior-grade cantaloupes at $0.45 per pound, and the economy-grade ones at $0.20 per pound. 


Required 

Allocate the $900 cost of the truckload to the superior-grade and economy-grade cantaloupes using the physical quantity method and the relative sales value method.

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Managerial Accounting

ISBN: 9781119577720

7th Edition

Authors: James Jiambalvo

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