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Author Question: The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed ... (Read 21 times)

sheilaspns

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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:33,000 gallons
Production:Butter Cream13,500gallons
Condensed Milk19,500gallons
Sales:Butter Cream13,000gallons
Condensed Milk19,000gallons
Sales:Butter Cream$3.50per gallon
Condensed Milk$5.50per gallon
Separable costs in total:Butter Cream$15,000
Condensed Milk$34,600

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 33,000 gallons of saleable product was $89,450. 

The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.  What is the allocated joint costs of Butter Cream?
◦ $34,600
◦ $15,000
◦ $61,925
◦ $27,525


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Marked as best answer by sheilaspns on Mar 6, 2021

vish98

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sheilaspns

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


kusterl

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Reply 3 on: Yesterday
:D TYSM

 

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