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Answer the following question(s) using the information below: The Sour Milk Company processes unprocessed milk up to the splitoff point where two products, condensed milk
Answer the following question(s) using the information below: The Sour Milk Company processes unprocessed milk up to the splitoff point where two products, condensed milk and skim milk result . The following information was collected for the month of April Direct materials processed: 65,0000 (there was some shrinkage) Production condensed milk skim milk 26, 100 litres 32,400 litres Sales condensed milk $5.00 per litre skim milk $3.50 per litre The costs of purchasing the 65,000 litres of unprocessed milk and processing it up to the splitoff point to yield a total of 58,500 litres of salable product was $55,000. There were no inventory balances of either product. Production condensed milk skim milk 26,100 litres 32,400 litres Sales condensed milk $5.00 per litre skim milk $3.50 per litre The costs of purchasing the 65,000 litres of unprocessed milk and processing it up to the splitoff point to yield a total of 58,500 litres of salable product was $55,000. There were no inventory balances of either product Condensed milk may be processed further to yield 20,000 litres (the remainder is shrinkage) of a medicinal milk product, Yuk, for an additional processing cost of $7.12 per usable litre. Yuk can be sold for $22 per litre. Skim milk can be processed further to yield 16,000 litres of skim ice cream, for an additional processing cost per usable litre of $3.60. The product can be sold for $15 per litre. There are no beginning and ending inventory balances. Using estimated net realizable value what amount of the $55,000 of joint costs would be allocated Yuk and the skim ice cream? O A. $36 120 and $36,120 B. $44,471 and $27,769 OC. $39,444 and $32,796 OD. $32,796 and $39,444 O E. $34,100 and $20.900
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