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1 The Green Company processes unprocessed goat milk up to the split - off point where two products, condensed goat milk and skim goat milk
1 The Green Company processes unprocessed goat milk up to the split - off point where two products, condensed goat milk and skim goat milk result The following information was collected for the month of October Dwect materials processed Production Condensed goat mk Skim goat milk 99,000 gallons (after shrinkage) 42,500 gallons 56,500 galons Sales opat milk $4 00 per gallon Skim goat iml $3 25 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split- off point to yield a totail of 99,000 gallons of saleable product was $191,480 There were no inventory balances of either product Condensed goat mik may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable gallon Xyla can be sold for $21 per gallon
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