McBride's Dairy Has 200 Gallons of Cream and 600 Gallons

question 125

Multiple Choice

McBride's Dairy has 200 gallons of cream and 600 gallons of skimmed milk and has incurred $1,000 of joint costs at the split-off point. It also incorporates a processing time weight factor of 1 for the cream and 3 for the skimmed milk. The amount of this cost that will be allocated to skimmed milk using the weighted average method is

• A)$1,000
• B)$900
• C)$100
• D)$750

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