Answer the Following Questions Using the Information Below:
the Alfarm

question 47

Multiple Choice

Answer the following questions using the information below:
The Alfarm Corporation processes raw milk up to the splitoff point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February:
$\begin{array}{lll}\text { Direct materials processed: } && 750,000 \text { gallons }(727,500 \text { gallons of good product) } \\\text { Production: } & \text { Cream } & 442,500 \text { gallons } \\& \text { Liquid skim } & 285,000 \text { gallons } \\\text { Sales: } & \text { Cream } & 421,500 \text { at } \$ 110 \text { per gallon } \\& \text { Liquid skm } & 273,000 \text { at } \$ 100 \text { per gallon }\end{array}$ The cost of purchasing 750,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 727,500 gallons of good product was $2,280,000.
-What are the physical-volume proportions to allocate joint costs for cream and liquid skim,respectively?

• A) 59.00% and 41.00%
• B) 60.82% and 39.18%
• C) 50.00% and 50.00%
• D) 59.79% and 40.21%

---

Definitions:

Dairy Products

Foods produced from the milk of mammals, such as cheese, yogurt, and butter, often rich in calcium and vitamin D.

High Protein

A diet or nutritional intake that is rich in protein, often recommended for muscle repair, growth, and overall health.

Impaired Skin Integrity

A condition where the skin is damaged, leading to increased risk of infection, inflammation, or other complications.

High Calorie

Referring to food or drink that is high in energy, usually because of a high content of fat, sugar, or both, contributing to weight gain if consumed in excess.