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

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. It also incorporates a processing time weight factor of 1 for the cream and 3 for the skimmed milk. The amount of this cost that will be allocated to skimmed milk using the weighted average method is

A) $1,000
B) $900
C) $100
D) $750