Question
19) ABC Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:
19) ABC 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 | 14,000 | gallons |
| Condensed Milk | 15,500 | gallons |
Sales: | Butter Cream | 13,500 | gallons |
| Condensed Milk | 15,000 | gallons |
Sales: | Butter Cream | $3.50 | per gallon |
| Condensed Milk | $6.00 | per gallon |
Separable costs in total: | Butter Cream | $13,500 |
|
| 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 ABC? ____________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started