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The American Produce Company purchased a truckload of cantaloupes (weighing 4,000 pounds) for $800. American Produce separated the cantaloupes into two grades: superior and economy. The superior grade cantaloupes had a total weight of 3,200 pounds and the economy grade cantaloupes totaled 800 pounds.The American Produce Company sells the superior grade at $0.35 per pound and the economy grade at $0.15 per pound.RequiredAllocate the $800.00 cost of the truckload to the superior grade and economy grade cantaloupes using the physical quantity method and the relative sales value method.
The American Produce Company purchased a truckload of cantaloupes (weighing 4,000 pounds) for $800. American Produce separated the cantaloupes into two grades: superior and economy. The superior…
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