XYZ prepares batter to produce chocolate chip cookies and raisin cookies.

Batter costs $85000 in each batch.

The process using batter produces 65000 chocolate chip cookies with a market value of $35000

The process using batter produces 20000 raisin cookies with a market value of $135000.

Costs incurred in operating in the baking machine is $88000

 

·     Costs of batter and operating the baking machine are allocated on the basis of units of output then what cost would be assigned to each product?

·     Costs of batter and operating the baking machine are allocated on the basis of net realizable value then what cost would be assigned to each product?

·     How can we determine whether chocolate chip cookies or raising cookies were more profitable for the compan

Answer rating: 100% (QA)

To calculate the cost assigned to each product well first determine the total cost incurred and then ... View the full answer