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 $360,000, and the following quantities of product and sales revenues were produced.
Product Pounds Price per Pound
- Milk 170,000 $1.60
- Cheese 57,000 2.90
- Butter 27,000 8.00
- Cream 17,000 10.00
How much of the $360,000 cost should be allocated to milk? (Do not round your intermediate calculations.)