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.
Product pounds price per pound
milk 100,000 $.90
cheese 50,000 2.20
butter 20,000 1.00
Cream 10,000 3.00
How much of the $240,000 cost should be allocated to milk?