The Brital Company processes unprocessed milk to produce two ...

[pane00]

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:

Direct Materials processed:

28,000 gallons

Production:	Butter Cream	12,000	gallons
​	Condensed Milk	16,000	gallons
Sales:	Butter Cream	11,500	gallons
​	Condensed Milk	15,500	gallons
Sales:	Butter Cream	$4.00	per gallon
​	Condensed Milk	$10.00	per gallon
Separable costs in total:	Butter Cream	$15,000	​
​	Condensed Milk	$35,800	​

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?
◦ $20,900
◦ $34,900
◦ $92,200
◦ $87,200

[bdobbins]

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[pane00]

Thanks for the timely response, appreciate it

[tkempin]

YES! Correct, THANKS for helping me on my review