A dairy company processed raw milk for $66,000. This raw milk can be converted into the following types of milk with listed sales values. Joint Products Sales Value Whole milk $ 31,000 2% milk 49,600 Skim milk 43,400 Total $ 124,000 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.

A dairy company processed raw milk for $66,000. This raw milk can be converted into the following types of milk with listed sales values. Joint Products Sales Value Whole milk $ 31,000 24 milk 49,600 Skim milk 43,400 Total $ 124,000 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 Percent of Total Denominator Allocated Cost Gross Profit Numerator % of Total Whole milk 2% milk Skim milk Totals