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. The amount of this cost that will be allocated to skimmed milk using the physical units method is a.$250 b.$0 c.$1,000 d.$750

Joint cost allocated to skimmed milk = $750

Explanation:

Given:

Cream = 200 gallons

Skimmed milk = 600 gallons

Joint cost = $1,000

Joint cost allocated to skimmed milk = ?

Computation of joint cost allocated to skimmed milk:

Joint cost allocated to skimmed milk = [Skimmed milk / (Skimmed milk + Cream)]Joint cost

Joint cost allocated to skimmed milk = [600 / (600 + 200)]$1,000

Joint cost allocated to skimmed milk = [600 / (800)]$1,000

Joint cost allocated to skimmed milk = [0.75]$1,000

Joint cost allocated to skimmed milk = $750

its ii) i did this test

explanation:

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself