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. 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.