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of June: The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk The following information was collected for the

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of June: The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk The following information was collected for the month Direct Materials processed. 32,000 gallons Production: Butter Cream, 14,000 gallons Condensed Milk 18.000 gallons Sales Butter Cream 13.500 gallons Condensed Milk 17,500 gallons Sales Butter Cream $4.00 per gallon Condensed Milk $8.50 per gallon Separable costs in Butter Cream total $16.500 Condensed Milk $34,600 The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 32,000 gallons of saleable product was $55,000 The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. Which of the following statements is true of Brital? CXCH OA. The gross margin is same for both products because constant gross margin percentage NFV method ignores profits eamed before the split-off point OB. The gross profit percent of condensed milk is lower than the gross profit of butter cream OC. The gross margin is allocated to the joint products in order to determine the joint-cost allocations OD. The gross profit of condensed milk is lower than the gross profit of butter cream. Next CHE

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