Answer the Following Question(s)using the Information Below

question 45

Multiple Choice

Answer the following question(s) using the information below:
The Morton Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result.The following information was collected for the month of October: The costs of purchasing the 65,000 litres of unprocessed goat milk and processing it up to the splitoff point to yield a total of 58,500 litres of salable product was $72,240.There were no inventory balances of either product.Condensed goat milk may be processed further to yield 19,500 litres (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable litre.Xyla can be sold for $18 per litre.Skim goat milk can be processed further to yield 28,100 litres of skim goat ice cream, for an additional processing cost per usable litre of $2.50.The product can be sold for $9 per litre.There are no beginning and ending inventory balances.
-Using estimated net realizable value, what amount of the $72,240 of joint costs would be allocated Xyla and the skim goat ice cream?

• A)$41,971 and $30,269
• B)$44,471 and $27,769
• C)$32,796 and $39,444
• D)$36,120 and $36,120
• E)$39,444 and $32,796

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Definitions:

Resolving Conflicts

The process of identifying and addressing differences that impede the achievement of goals.

Task-related Conflicts

Disagreements or disputes that arise over how a particular job or task should be done, its goals, and the resources allocated to it.

Change Competency

The ability of individuals or organizations to adapt effectively to new conditions, transformations, or innovations.

Implement Needed Adaptations

The process of making necessary changes or adjustments to procedures, policies, or strategies to meet new conditions.