Refer to the data given in the preceding exercise.

Data from preceding exercise 

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: 

Required: 

Use the relative-sales-value method to allocate Breakfast time Cereal Company’s joint production cost between Yummies and Crummies.

Joint Cost $30,000 Cereal Yummies Crummies Quantity at split-Off Point 12,000 kilograms 8,000 kilograms Sales Price per Kilogram $2.00 2.50