Exerclse
17-21
Relatlve-Sales-Value
Method;
Joint
Cost
Allocation
(LO
17-4)
Breakfasime
Cereal
Company
manufactures
two
breakfast
cereals
i
a
joint
process.
Cost
and
quantiy
information
is
as
follows:
Quantity
st
Sales
price
Jolnt
Cost
Cersal
Split.OFf
point
per
Kilogram
Sol00
vemies
12,100
kilograns
s6.10
Crumies
100
kilograns
7ie0
Requires
Use
the
refative-sales-value
metnod
1o
allocste
Sreakasitime
Ceresl
Company's
ot
production
cost
between
Yumries
and
Crummies.
(Round
Intermediate
calculations
of
Relative
Proportions
o
3
decimal
places
and
final
answers
to
the
nearest
dollar
ummes
Crummes
=
Explanation
Joint
quantity
st
Ssles
Salesvaleat
Relative
Allocation
of
Joint
Cost
Products
SLit-OFf
Price
SPLItOFF
Point
Proportion
Joint
Cost
vummies
200k
3510
s
7,510
o.5050
349,595
s91,000
Crumies
sk
7.6
B
o.55%
41,2057
Total
31,57
o100
"Rounded
7549595
2521000
<
0545
~$41405=
§91000
<
0455
