condensed goat milk and skim goat milk result. The following information was collected for the month of The Gows Company processes unprocessed goat milk up to the split-off point where two products, October: Direct Materials processed: 130,000 gallons (shrinkage was 10%) Production: 52,200 gallons condensed goat milk skim goat milk 64,800 gallons condensed goat milk skim goat milk $3.50 per gallon $2.50 per gallon Sales: The costs of purchasing the 130,000 gallons of unprocessed goat milk and processing it up to the split-off point to yield a total of 117,000 gallons of salable product was $144,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 39,000 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 $18 per gallon. Skim goat milk can be processed further to yield 56,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $2.50. The product can be sold for $9 per gallon. The ending inventory balances for the two products are as follows: Xyla Goat milk 6,800 units 14,600 units Required 1. Using the net realizable method of joint cost allocation, compute the cost of inventories of Xyla and skim goat ice cream products for the balance sheet purposes and the cost of goods sold for income statement purposes. (8 points)