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Answer should be A, but I need to see the workings please! The Green Company processes unprocessed goat milk up to the split - off
Answer should be A, but I need to see the workings please!
The Green Company processes unprocessed goat milk up to the split - off 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: Production.Condensed at 104,500 gallons (after shrinkage) Condensed goat milk45,500 gallons Skim goat milk Condensed goat milk 59,000 gallons 3.25 per gallon $2.50 per gallon Sales. The costs of purchasing the of unprocessed goat milk and processing it up to the split- off point to yield a total of 104,500 gallons of saleable product was $190,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 45,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable gallon. Xyla can be sold for $19 per gallon. Skim goat milk can be processed further to yield 57,700 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $3. The product can be sold for Skim goat milk can be processed further to yield 57,700 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $3. The product can be sold for $11 per gallon. There are no beginning and ending inventory balances. Using the sales value at split-off method, what is the gross -margin percentage for condensed goat milk at the split - off point? (Round intermediary percentages to the nearest hundredth.) 35.51% 50.00% 50.06% 49.94% A. B. OC. ODStep by Step Solution
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