(3 points) A company in Door County processes unprocessed goat milk up to the splitoff point where two products, regular goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 130,000 gallons (shrinkage was 10%) Production: 52,200 gallons 64,800 gallons Regular goat milk Skim goat milk Regular goat milk Skim goat milk Sales price: $3.50 per gallon $2.50 per gallon The costs of purchasing the 130,000 gallons of unprocessed goat milk and processing it up to the splitoff point to yield a total of 117,000 gallons of salable product was $144,480. There were no inventory balances of either product. Regular goat milk may be processed further to yield 39,000 gallons (the remainder is shrinkage) of a medicinal product, Petma, for an additional processing cost of $3 per usable gallon. Petma can be sold for $18 per gallon. Skim goat milk can be processed further to yield 56,200 gallons of gelato, for an additional processing cost per usable gallon of $2.50. The product can be sold for $9 per gallon. There are no beginning and ending inventory balances. (Quest 1 of 2) Using estimated net realizable value, what amount of the $144,480 of joint costs would be allocated Petma and the gelato? $88,942 and $55,538 $144,480 and $72,140 $83,942 and $60,538 $65,592 and $78,888 (Quest 2 of 2) Using the sales value at splitoff method, what is the gross-margin percentage for regular goat milk at the splitoff point? 55.1% 38.2% 21.1% 58.1%