A dairy company processed raw milk for $65,000. This raw milk can be converted into the following types of milk with listed sales values.

Use the sales value basis to (1) allocate the total cost of the raw milk to each type of milk and (2) determine the gross profit for each type of milk.

A dairy company processed raw milk for $65,000. This raw milk can be converted into the following types of milk with listed sales values. Joint Products Whole milk 25 milk Sales Value $ 30.000 48.000 42,000 Skim milk Total $ 120,000 Use the sales value basis to (1) allocate the total cost of the raw milk to each type of milk and (2) determine the gross profit for each type of milk. Joint Products Sales Value Allocated Cost Gross Profit Percent of Total Denominator Numerator % of Total Whole milk 2% milk Skim milk Totals