A Dairy Allocates the Cost of Unprocessed Milk to the Production

question 146

Multiple Choice

A dairy allocates the cost of unprocessed milk to the production of milk, cream, butter and cheese. For the current period, unprocessed milk was purchased for $240,000, and the following quantities of product and sales revenues were produced. How much of the $240,000 cost should be allocated to milk?

• A) $0.
• B) $86,400.
• C) $90,000.
• D) $133,333.
• E) $240,000.

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Definitions:

Participation

The action of taking part in an activity or event.

Concrete Operational

Describes a stage in Piaget's theory of cognitive development during which children aged approximately 7 to 12 years are capable of logical thought processes but are not yet able to handle abstract reasoning.

Mentally Combine

The cognitive ability to merge different concepts, ideas, or pieces of information in the mind to form new knowledge or understanding.

Transform Objects

The act or process of changing the form, appearance, or function of objects, often through creative or imaginative efforts.