The Green Company Processes Unprocessed Goat Milk Up to the Split-Off

question 62

Multiple Choice

The Green Company processes unprocessed goat milk up to the split-off 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 of unprocessed goat milk and processing it up to the split-off point to yield a total of 102,000 gallons of saleable product was $188,480.There were no inventory balances of either product.Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product,Xyla,for an additional processing cost of $4 per usable gallon.Xyla can be sold for $20 per gallon.
Skim goat milk can be processed further to yield 58,200 gallons of skim goat ice cream,for an additional processing cost per usable gallon of $4.The product can be sold for $12 per gallon.
There are no beginning and ending inventory balances.
What is the estimated net realizable value of the skim goat ice cream at the split-off point?

• A)$465,600
• B)$476,000
• C)$672,000
• D)$680,000

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Definitions:

Implicit Self-Esteem

Self-esteem you are not necessarily aware of having.

False Uniqueness Effect

A cognitive bias wherein individuals underestimate the extent to which their abilities, behaviors, or beliefs are shared by others.

Sociometer Theory

A theory linking level of self-esteem with level of belongingness.

Belongingness

An emotional need or desire for strong and stable relationships with different groups or communities.