Answer the Following Questions Using the Information Below

question 80

Multiple Choice

Answer the following questions using the information below:
The Gows 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 130,000 gallons of unprocessed goat milk and processing it up to the splitoff point to yield a total of 117,000 gallons of salable product was $144,480. There were no inventory balances of either product.
Condensed goat milk may be processed further to yield 39,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable gallon. Xyla can be sold for $18 per gallon.
Skim goat milk can be processed further to yield 56,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $2.50. The product can be sold for $9 per gallon.
There are no beginning and ending inventory balances.
-What is the estimated net realizable value of Xyla at the splitoff point?

• A)$365,300
• B)$505,800
• C)$585,000
• D)$702,000

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Definitions:

Cultural Worldview

The collective set of beliefs, values, attitudes, and practices shared by a group of people that shape their perception and interpretation of the world.

Body Shame

The feeling of embarrassment or distress about one's body appearance or functions, often influenced by societal norms and personal perceptions.

Ethnic Minority Member

An individual belonging to a smaller ethnic or cultural group within a larger community, often distinguished by customs, language, or religious practices.

Stigmatized Group

A social group that is negatively discriminated against and marginalized due to characteristics deemed undesirable by society.