The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October:
The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 100,500 gallons of saleable product was $191,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $6 per usable gallon. Xyla can be sold for $21 per gallon.
Skim goat milk can be processed further to yield 56,700 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $6. The product can be sold for $14 per gallon.
There are no beginning and ending inventory balances.
What is the estimated net realizable value of Xyla at the split-off point?
Definitions:
Q9: Which of the following is true of
Q34: Four Seasons Company makes snow blowers. Materials
Q53: Which of the following statements is true
Q71: Equivalent units is a derived measure of
Q78: The Esther Valve Corporation was recently formed
Q86: When actual cost-allocation rates are used, managers
Q88: List and describe the five steps in
Q101: The purpose of the equivalent-unit computation is
Q141: Under the FIFO method of process-costing, costs
Q159: Blue States Coffee, Inc., sells two types