split-off point for $1.25 per gallon, and light and heavy cream require further processing. Light cream is processed further for $10,000 and is sold for $2.00 per gallon. Heavy cream is processed further for $7.500 and is sold for $2.50 per gallon. 26. Farmland Dairy raises cows and produces three products: raw milk, light cream, and heavy cream. Raw milk is sold at the Last month, the joint costs of raising and caring for the cows amounted to $37,500. Farmland Dairy produced 35,000 gallons of milk, 25,000 gallons of light cream, and 15,000 gallons of heavy cream. Required Allocate the joint costs to the products based on the number of gallons produced. b. Prepare an income statement for the three products using the cost allocations from part a. c. a. Allocate the joint costs to the products based on the sales value at split-off. Prepare an income statement for the three products using the cost allocations from part c. al Allocated Cost Product Allocation Rate Weight of Base Raw Milk Light Cream Heavy Cream Total eavy Cream Milk Light Cream Sales Total COGS Gross Margin 26. Farmland Dairy raises cows and produces three products: raw milk, light cream, and heavy cream. Raw milk is sold at the split-off point for $1.25 per gallon, and light and heavy cream require further processing. Light cream is processed further for $10,000 and is sold for $2.00 per gallon. Heavy cream is processed further for $7,500 and is sold for $2.50 per gallon. Last month, the joint costs of raising and caring for the cows amounted to $37,500. Farmland Dairy produced 35,000 gallons of milk, 25,000 gallons of light cream, and 15,000 gallons of heavy cream. Required Allocate the joint costs to the products based on the number of gallons produced. b. Prepare an income statement for the three products using the cost allocations from part a. Allocate the joint costs to the products based on the sales value at split-off d. Prepare an income statement for the three products using the cost allocations from part c. a. c. a. Allocated Cost Product Weight of Base Allocation Rate Raw Milk Light Cream Heavy Cream Total