The Brital Company Processes Unprocessed Milk to Produce Two Products

question 75

Multiple Choice

The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:
Direct Materials processed:29,500 gallons

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 29,500 gallons of saleable product was $49,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross margin percent for Brital?

• A) 66%
• B) 29%
• C) 32%
• D) 41%

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Definitions:

Second Continental Congress

A convention of delegates from the Thirteen Colonies that managed the colonial war effort during the American Revolution and adopted the Declaration of Independence.

Declaration Of Independence

A document adopted on July 4, 1776, by the Second Continental Congress, declaring the thirteen American colonies independent from British rule.

Treason

The act of betraying one's country, typically by attempting to overthrow the government or collaborating with enemy forces during times of war.