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

question 72

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 31,500 gallons of saleable product was $109,025.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.If separable costs of Butter Cream was $19,000 and constant gross margin was 30%,what would have been the total allocated joint costs of production?

• A)$109,025
• B)$35,600
• C)$97,400
• D)$163,625

---

Definitions:

Testing Effect

Enhanced memory after retrieving, rather than simply rereading, information. Also referred to as a retrieval practice effect or test-enhanced learning.

Enhanced Memory

The improvement in the capacity to recall or recognize information due to various factors like emotions or techniques.

Distributed Practice

A learning strategy that spreads study activities over time, as opposed to cramming them into a single session, enhancing long-term memory retention.

Long-Term Recall

The ability to remember information over extended periods of time, ranging from days to decades.