How much will be allocated to deluxe doughnuts

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Reference no: EM131224122

Doughnuts Inc. uses flour to produce two joint products. When processed each pound of flour yields 8 units of premium and 12 units of deluxe. Premium donuts sells for $1.00 per unit and deluxe sells for $2.00 per unit. The total cost to process a 10pound batch of flour is $12.00. If the sales value method is used to allocate the $12.00 in joint costs, how much will be allocated to deluxe doughnuts?

Reference no: EM131224122

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