Answer (D) is correct . The net allocable joint cost is $90,000, assuming the value of Morefeed is inventoried and treated as a reduction in joint costs. The caloric value of Alfa is 44,000,000 (4,400 ¡Á 10,000 pounds), the caloric value of Betters is 56,000,000 (11,200 ¡Á 5,000 pounds), and the total is 100,000,000. Of this total volume, Alfa makes up 44% and Betters 56%. Thus, $50,400 ($90,000 ¡Á 56%) should be allocated to Betters.<
Answer (A) is incorrect because The figure of $39,208 is the amount allocated to Alfa if the 1,000,000 calories attributable to Morefeed is included in the computation.
Answer (B) is incorrect because The figure of $39,600 is the allocation to Alfa.
Answer (C) is incorrect because The figure of $40,920 is the allocation to Alfa if the sales value of the by-product is not treated as a reduction of joint cost.
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Assuming Atlas Foods inventories Morefeed, the by-product, the joint cost to be allocated to Betters using the weighted-quantity method based on caloric value per pound is
