Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

19 Question (2 points) The Green Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat

image text in transcribed
image text in transcribed
19 Question (2 points) The Green Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October Direct Materials processed: 98,000 gallons (after shrinkage) Production: Condensed goat milk 42,500 gallons Skim goat milk 55,500 gallons Sales: Condensed goat milk $3.50 per gallon Skim goat milk $2.50 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the splitoff point to yield a total of 98,000 gallons of saleable product was $184,480. There were no inventory balances of either product Condensed goat milk 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 $4 per usable gallon. Xyla can be sold for $20 per gallon Skim goat milk can be processed further to yield $4,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of S4. The product can be sold for S8per gallon. There are no beginning and ending inventory balances. Q. What is the estimated net realizable value of Ice cream at the splitoff point? 672.000 O271000 0 216800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-30

Authors: John Price, M. David Haddock, Michael Farina

15th edition

1259994975, 125999497X, 1259631117, 978-1259631115