The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February:
| Direct materials processed: | 800,000 gallons (778,500 gallons of good product) |
| Production: | Cream | 443,500 gallons |
| Liquid skim | 335,000 gallons |
| Sales: | Cream | 424,500 at $130 per gallon |
| Liquid skim | 324,000 at $120 per gallon |
The cost of purchasing 800,000 gallons of direct materials and processing it up to the split-off point to yield a total of 778,500 gallons of good product was $2,350,000. Which of the following statements about Alfarm's joint production costs is true?
◦ The gross-margin percentage per gallon of Cream and Liquid skim are equal because joint costs are allocated based on the number of gallons.
◦ The gross-margin percentage per gallon of Cream is higher than gross margin percentage per gallon of Liquid skim because of Cream's higher production volume.
◦ The joint production cost per gallon of Cream and Liquid skim are equal because joint costs are allocated based on the number of gallons.
◦ The joint production cost per gallon of Cream is higher than joint production cost per gallon of Liquid skim because of Cream's higher production volume.
Scaling the Earth down to the size of a basketball, the Moon is roughly the size of a tennis ball. T
How to find the equation of a line that is parallel to a line passing through a point
Specific transport processes
Set-Point Theory
Constructing a Three-Point Recombination Map
Gene-transfer processes in bacteria