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Author Question: The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and ... (Read 52 times)

09madisonrousseau09

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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:Cream443,500 gallons
Liquid skim335,000 gallons
  Sales:Cream424,500 at $130 per gallon
Liquid skim324,000 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.


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Marked as best answer by 09madisonrousseau09 on Mar 6, 2021

cupcake16

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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09madisonrousseau09

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


isabelt_18

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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