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

question 136

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 33,000 gallons of saleable product was $89,450.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.What is the allocated joint costs of Butter Cream?

• A)$34,600
• B)$15,000
• C)$61,925
• D)$27,525

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Definitions:

Cost-Push Inflation

Inflation caused by an increase in prices of inputs like labour, raw material, etc., leading to a decrease in the supply of these goods.

Variants

Different forms or versions of something, often used to describe mutations in viruses or diverse options of a product or service.

Business Cycle

The fluctuation in economic activity that an economy experiences over a period of time, consisting of expansion (growth) and contraction (recession) phases.

High Point

The highest value or peak that an economic indicator or a market index reaches over a specific time period.