Skim goat milk can be processed further to yield 55,200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $5. The product can be sold for $13 per gallon. There are no beginning and ending inventory balances. How much (if any) extra income would Green earn if it produced and sold skim milk ice cream from goats rather than goat skim milk? Allocate joint processing costs based upon the relative sales value at the splitoff point.

The Green Company processes unprocessed goat milk up to the split - off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October Direct materials processed: Production: Condensed goat milk Skim goat milk Sales Condensed goat milk Skim goat milk 100,500 gallons (after shrinkage) 44,000 gallons 56,500 gallons $5.00 per gallon $4.25 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split - off point to yield a total of 100,500 gallons of saleable product was $191,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 43,500 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $5 per usable gallon. Xyla can be sold for $21 per gallon. O A. $604,447 O B. $201.475 O C. $476,000 OD. $341,673