The Alfarm Corporation Processes Raw Milk Up to the Split-Off

question 78

Multiple Choice

The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February:

The cost of purchasing 820,000 gallons of direct materials and processing it up to the split-off point to yield a total of 797,500 gallons of good product was $2,350,000. What are the physical-volume proportions to allocate joint costs for cream and liquid skim, respectively?

• A) 54.02% and 45.98%
• B) 55.55% and 44.45%
• C) 50.00% and 50.00%
• D) 53.17% and 46.83%

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Definitions:

Stakeholder Ethics

Principles and standards guiding how stakeholders' interests should be considered and addressed in decision-making processes.

Proactive Commitment

The dedication to take initiative and anticipate future problems, needs, or changes.

Interactional Justice

The perceived fairness of the interpersonal treatment received from others, especially in the context of decision-making processes.

Procedural Justice

Procedural justice concerns the fairness and transparency of the processes used to make decisions, often affecting individuals' perceptions of legitimacy and fairness in organizations.