The Kenton Company Processes Unprocessed Milk to Produce Two Products

question 63

Multiple Choice

The Kenton 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: 24,500 gallons (after shrinkage)

The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 24,500 gallons of saleable product was $55,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross-margin percent for Kenton?

• A) 64.1%
• B) 20.4%
• C) 23.6%
• D) 62.6%

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Definitions:

Asthma

A chronic respiratory condition characterized by airway inflammation, leading to wheezing, shortness of breath, and coughing.

Ethnic Group

A community or population made up of people who share a common cultural background, ancestry, language, or social experience.

Highest Rates

The most elevated frequency or level of an occurrence or phenomenon within a specific area or among a particular group or population.

Hygiene Hypothesis

A theory suggesting that a lack of early childhood exposure to infectious agents, symbiotic microorganisms, and parasites increases susceptibility to allergic diseases by suppressing the natural development of the immune system.