q 36

The Sour Milk Company processes unprocessed milk up to the splitoff point where two products, condensed milk and skim milk result. The following information was collected for the month of April: Direct materials processed: 65,0000 (there was some shrinkage) Production: condensed milk skim milk 26,100 litres 32,400 litres Sales condensed milk $5.00 per litre skim milk $3.50 per litre The costs of purchasing the 65,000 litres of unprocessed milk and processing it up to the splitoff point to yield a total of 58,500 litres of salable product was $55,000. There were no inventory balances of either product. Condensed milk may be processed further to yield 20,000 litres (the remainder is shrinkage) of a medicinal milk product, Yuk, for an additional processing cost of $7.12 per usable litre. Yuk can be sold for $22 per litre. Production: condensed milk skim milk 26,100 litres 32,400 litres Sales condensed milk $5.00 per litre skim milk $3.50 per litre The costs of purchasing the 65,000 litres of unprocessed milk and processing it up to the splitoff point to yield a total of 58,500 litres of salable product was $55,000. There were no inventory balances of either product Condensed milk may be processed further to yield 20,000 litres (the remainder is shrinkage) of a medicinal milk product, Yuk, for an additional processing cost of $7 12 per usable litre. Yuk can be sold for $22 per litre Skim milk can be processed further to yield 16,000 litres of skim ice cream, for an additional processing cost per usable litre of $3.60. The product can be sold for $15 per litre. There are no beginning and ending inventory balances Using estimated net realizable value, what amount of the $55,000 of joint costs would be allocated Yuk and the skim ice cream? O A. $32,796 and $39,444 OB. $34,100 and $20,900 OC. $36,120 and $36,120 OD. $39,444 and $32,796 O E $44,471 and $27,769