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Dairy Processing Company manufactures and sells premium lactose-free milk and ordinary milk by gallon. It adopted first in first out inventory costing system. It has

Dairy Processing Company manufactures and sells premium lactose-free milk and ordinary milk

by gallon. It adopted first in first out inventory costing system. It has just finished its first year

operations. The following data relates to this first year:

image text in transcribed
November December Number of gallons sold 1,200 gallons 1,300 gallons Number of gallons produced 1,400 gallons 1,250 gallons Unit sales price per gallon $55.00 per gallon $53.00 per gallon Unit cost of milk purchased from local dairy farmers per $13 per gallon $11 per gallon gallon Wages and salaries paid to machine operators at diary $7 per gallon $7 per gallon processing plant per gallon Total depreciation on dairy machines $2,100 $2,100 Unit advertising expenses per gallon $5 per gallon $5.2 per gallon Total depreciation on Marketing department $2,400 $2,500

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