Use the Following Information for the Next 5 Questions

question 13

Multiple Choice

Use the following information for the next 5 questions.
The Great Foods Company processes milk into skim milk and butter. This year 70,000 gallons of will be processed, costing $40,000. If processed to the split-off point, this will yield 40,000 gallons of skim milk and 10,000 pounds of butter. Skim milk is sold to distributors for $1 per gallon and butter is sold for $0.75 per pound. Great Foods has the option of processing the two products further. Skim milk can be processed into canned, sweetened, condensed skim milk and sold for $0.80 per can. One gallon of skim milk makes 2 cans of condensed milk. To process 40,000 gallons of skim milk will cost $18,000. Butter can be processed into cake frosting, sold in containers for $2 each. One pound of butter goes into each container of frosting. The cost of processing 10,000 pounds of butter into frosting costs $15,000.
-What is the per-unit joint cost allocated to condensed milk and frosting if the sales value at split-off method is used?

• A) $0.8421 per can and $0.6316 per container
• B) $0.42105 per can and $0.6316 per container
• C) $0.381 per can and $0.9524 per container
• D) $0.7619 per can and $0.9524 per container

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Definitions:

Preexisting Joints

Natural fractures or separations in rock that were present before any other types of deformation.

Open Space

Areas of land that are either naturally occurring or designated for recreational use, conservation, or urban planning, often lacking significant built structures.

Rock Avalanche

is a rapid, massive landslide consisting of rock debris flowing down a slope.

Debris Flow

A fast-moving mass of loose mud, rocks, and water that flows down a slope, often triggered by heavy rain or rapid snowmelt.