Answer the Following Questions Using the Information Below:
the Brital

question 134

Multiple Choice

Answer the following questions using the information below:
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
$$\begin{array} { | l | l | r | r | } \hline \text { production: } & \text { butter Cream } & 12,500 & \text { gallons } \\\hline & \text { Condensed Milk } & 15,500 & \text { gallons } \\\hline \text { Sales: } & \text { Gutter Cream } & 12,000 & \text { gallons } \\\hline & \text { Condensed Milk } & 15,006 & \text { gallons } \\\hline \text { Sales: } & \text { butter Cream } & \$ 2.5 & \text { per gallon } \\\hline & \text { Condensed Milk } & \$ 5.5 & \text { per gallon } \\\hline \text { Separable costs in } & & & \\\text { total: } & \text { butter Cream } & \$ 13,500 & \\\hline & \text { Condensed Milk } & \$ 33,708 & \\\hline\end{array}$$ The costs of purchasing the of unprocessed milk and processing it up to the splitoff point to yield a total of 28,000 gallons of saleable product was $46,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.
-If separable costs of Butter Cream was 16,000 and constant gross margin was 25%,what would have been the total allocated joint costs of production?

• A) $37,675
• B) $33,700
• C) $30,238
• D) $34,500

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Definitions:

Discretionary Fiscal Policy

Involves the use of government spending and tax policies to influence the economy, based on current economic conditions and objectives.

Natural Rate

The natural rate is a concept in economics describing conditions where the economy is at equilibrium, with full employment and no inflationary or deflationary pressures.

Aggregate Supply

The aggregate amount of products and services that companies in an economy are prepared and able to offer at a specific general price level during a certain time frame.

Natural Rate

Refers to the equilibrium rate of unemployment or interest where the economy is stable, without accelerating inflation.