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The Brital Company Processes Unprocessed Milk to Produce Two Products

question 74

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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:28,000 gallons
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:28,000 gallons   The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,100. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $17,500 and constant gross margin was 20%, what would have been the allocated joint costs of Condensed Milk? A)  $20,900 B)  $34,900 C)  $92,200 D)  $87,200
The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,100.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $17,500 and constant gross margin was 20%, what would have been the allocated joint costs of Condensed Milk?

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