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

question 62

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 780,000 gallons of direct materials and processing it up to the split-off point to yield a total of 758,500 gallons of good product was $2,310,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim? (Round intermediary percentages to the nearest hundredth.)

• A) $1,350,657 and $959,343
• B) $1,155,000 and $1,155,000
• C) $1,345,524 and $964,476
• D) $1,313,442 and $996,558

---

Definitions:

Fovea

A tiny indentation in the retina that is the location of the sharpest vision.

Visual Acuity

Refers to the sharpness of vision, measured by the ability to discern letters or numbers at a given distance according to a standardized eye chart.

Peripheral Vision

The part of vision that occurs outside the very center of gaze, allowing humans to detect motion and stimuli outside the direct line of sight.

Motion Detection

A technology or process for recognizing movement within a particular environment, often used in security systems and interactive applications.