The Brital Company Processes Unprocessed Milk to Produce Two Products,Butter

question 80

Multiple Choice

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:


The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 31,000 gallons of saleable product was $146,450.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.What is the allocated joint costs of Condensed Milk?

• A)$120,000
• B)$14,500
• C)$33,900
• D)$26,450

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Definitions:

Hydrogen Ions

Positively charged ions (H+) that are formed when hydrogen atoms lose their electrons; a high concentration of hydrogen ions indicates acidity.

Protons

Positively charged subatomic particles found in the nucleus of an atom, determining the element's atomic number.

Acidic

Having a pH less than 7, indicating a higher concentration of hydrogen ions in a solution, which gives it acidic properties.

Basic

In chemistry, basic describes substances with a pH greater than 7, possessing the ability to accept protons or donate electrons or hydroxide ions.