A Dairy Allocates the Cost of Unprocessed Milk to the Production

Multiple Choice

A dairy allocates the cost of unprocessed milk to the production of milk, cream, butter and cheese.For the current period, unprocessed milk was purchased for $240,000, and the following quantities of product and sales revenues were produced. $\begin{array}{lrr}&&\text { Price per }\\\underline { \text { Product } } &\underline { \text { Pounds } } &\underline { \text { Pounds }} \\\text { Milk } & 100,000 & \$ 0.90 \\\text { Cheese } & 50,000 & 2.20 \\\text { Butter } & 20,000 & 1.00 \\\text { Cream } & 10,000 & 3.00\end{array}$ How much of the $240,000 cost should be allocated to milk?

A) $0
B) $86,400
C) $90,000
D) $133,333
E) $240,000