Breakfasttime

Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity

information is as follows:

Joint Cost  Cereal  Quantity at Split-Off Point  Sales Price per Kilogram

$30,000  Yummies ..................... 12,000 kilograms ..................................... $2.00

 Crummies .................... 8,000 kilograms ..................................... 2.50

Required: Use the physical-units method to allocate the company’s joint production cost between

Yummies and Crummies.