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McBride's Dairy Has 200 Gallons of Cream and 600 Gallons

Question 139

Multiple Choice

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) $1,000
B) $750
C) $250
D) $0

Correct Answer:

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