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10) The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of
10) 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: 29,500 gallons Production: Butter Cream Condensed Milk Butter Cream Condensed Milk Butter Cream Condensed Milk Separable costs in Butter Cream 14,000 gallons 15,500 gallons 13,500 gallons 15,000 gallons $3.50 per gallon $6.00 per gallon $13,500 Sales: Sales: total: 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 29,500 gallons of saleable product was $49,000. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross margin percent for Brital? A) 29% B) 32% C) 41% D) 66%
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