Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calm Camel Co. purchases unprocessed camel milk and processes it up to a split-off point where two products, condensed camel milk and skim camel milk

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Calm Camel Co. purchases unprocessed camel milk and processes it up to a split-off point where two products, condensed camel milk and skim camel milk result. The following information for a typical month is as follows: The cost of purchasing the unprocessed camel milk and processing it up to the split-off point is $180,000. Condensed camel milk can be sold at the split-off point for $3.00 per gallon. Alternatively, condensed camel milk may be further processed to yield 44,000 gallons ( 700 gallons are lost in processing) of a pharmaceutical product, Camelax, for an additional processing cost of $132,000. Camelax can be sold for $10 per gallon. Skim camel milk can be sold at the split-off point for $2.00 per gallon. Alternatively, skim camel milk may be further processed to yield 57,000 gallons ( 300 gallons are lost in processing) of yogurt for an additional processing cost of $171,000. The yogurt can be sold for $15 per gallon. There are no beginning and ending inventory balances. Using the sales value at split-off method of allocating joint costs, what amount of the joint costs would be allocated to Skim Camel Milk product line? Question 4 8.25pts Using the estimated net realizable value of allocating joint costs, what amount of the joint costs would be allocated to the Condensed Camel Milk product line? $61,159 $55,887 $132,000 $97,057 Assume that the products are fully processed (meaning Camelax and yogurt are produced). Assuming all the yogurt produced is sold, calculate the gross-margin percentage for yogurt if joint costs are allocated using the sales value at split-off method. 80% 10% 70% 90% 65% How much (if any) extra income would Calm Camel earn if it produced and sold all of the yogurt from the skim camel milk? (Extra income means income in excess of what Calm Camel would have earned from selling skim camel milk.) $569,400 $740,400 $445,287 Cannot be determined from the information given $688.500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

MP Auditing And Assurance Services W/ACL Software CD ROM A Systematic Approach

Authors: William Messier Jr, Steven Glover, Douglas Prawitt

9th Edition

1259162346, 978-1259162343

More Books

Students also viewed these Accounting questions

Question

Presentations Approaches to Conveying Information

Answered: 1 week ago