The Brital Company Processes Unprocessed Milk to Produce Two Products

question 107

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:31,500 gallons

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 31,500 gallons of saleable product was $109,025.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $19,000 and constant gross margin was 30%, what would have been the total allocated joint costs of production?

• A) $109,025
• B) $35,600
• C) $97,400
• D) $163,625

---

Definitions:

Moral Philosophy

The branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.

Organizational Environment

The external forces, conditions, and entities that affect the operation and strategies of an organization.

Business Activities

The various actions, operations, and pursuits that a company engages in to achieve its business objectives and generate revenue.

Facilitation Payment

A type of bribe made to expedite or secure the performance of a routine or necessary action to which the payer is legally entitled.