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

question 42

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 28,000 gallons of saleable product was $113,100.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.If separable costs of Butter Cream was $17,500 and constant gross margin was 20%,what would have been the allocated joint costs of Condensed Milk?

• A)$20,900
• B)$34,900
• C)$92,200
• D)$87,200

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Definitions:

Alpha

In statistics, often referred to as the significance level, it represents the probability of rejecting the null hypothesis when it is actually true.

Degrees Of Freedom

The number of independent pieces of information used to calculate a statistic, often influencing the shape of various sampling distributions.

Statistical Analysis

The method of gathering, examining, analysing, and showcasing information to identify inherent trends and patterns.

Married Couples

Individuals joined by marriage, often studied in demographics and social sciences.