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cswebdav/pid-230/369-d Borden Milk Company processes raw milk in Department A from which come two main products, Butter and Yogurt, and a by-product, Buttermilk. Butter is

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cswebdav/pid-230/369-d Borden Milk Company processes raw milk in Department A from which come two main products, Butter and Yogurt, and a by-product, Buttermilk. Butter is further processed in Department B, Yogurt in Department C, and Buttermilk in Department D. The value of the by- product reduces the cost of the main products, and sales value is used to allocate joint costs. Dept A $90, 00o Dept B DeptC Dept D $10,000 $8,000 $10,000 Cost Incurred: Production: Yogurt Buttermilk Selling Price: Butter 10,000 lbs. 20, 000 10,000 lbs. Butter Yogurt Buttermilk $10/1b. $5/1b. $2/1b. Required: a. Compute unit costs for Butter and Yogurt b. Ending inventory consists of 5,000 Ibs. of Yogurt and 1,000 lbs. of Buttermilk. What is the value of the inventory? c. Recompute requirements a and b allocating cost based on net realizable value

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