The Brital Company Processes Unprocessed Milk to Produce Two Products

question 74

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: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

---

Definitions:

Professional Ethics

The set of principles and moral values that guide the behavior and practices of individuals in professional roles.

Formal Sanctions

Officially enforced penalties or rewards for behavior, typically in a legal or organizational context.

Violations

Acts of breaking rules, laws, or agreements, leading to consequences or penalties.

Professional Conduct

Accepted standards of behavior and practices expected from individuals within a certain profession.