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Question five [1.5 Marks] The Alain Green Company purchased 98,000 gallons of unprocessed goat milk at $185,000 and Jo processed it at a cost
Question five [1.5 Marks] The Alain Green Company purchased 98,000 gallons of unprocessed goat milk at $185,000 and Jo processed it at a cost of $25,000 to produce two products, 42,000 gallons of condensed goat milk and 55,000 gallons of skim goat milk. The condensed goat milk could be sold at the split-off point at $3.50 per gallon while the skim goat milk could go for $2.50 per gallon. Condensed goat milk may be processed further at a cost of $5 per usable gallon to yield 42,000 gallons of a medicinal milk product, Goat Med, which can be sold for $30 per gallon. Skim goat milk can be processed further to yield 55,000 gallons of skim goat ice cream, SkimGo, for an additional processing cost per usable gallon of $5. The product can be sold for $10 per gallon. There are no beginning and ending inventory balances. Required Compute joint cost allocated to Goat Med using the Net Realizable Method. Skim gout milk
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