Answer the Following Questions Using the Information Below:
the Brital

question 83

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 allocated joint costs of Condensed Milk?

• A) $7,438
• B) $7,538
• C) $30,238
• D) $30,338

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