A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $310,000, and the following quantities of product and sales revenues were produced. Product Pounds Price per Pound Feed 160000 $1.50 Flour 56000 $2.80 Starch 26000 $7.00
How much of the $310,000 cost should be allocated to feed if the value basis is used?
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