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The Alarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no

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The Alarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February Direct material proceed Production Cream 800.000 gallons (778.500 gallons of good product 443.500 gallons Logo Cream 424.500 at $130 per gallon Liquid 124.000 at 5120 per gallon The cost of purchasing 100.000 gallons of direct materials and processing it up to the split-off point to yield a total of 778.500 gallons of good product was $2.150.000. Which of the following statements about Alfarm's joint production costs is true? Select O A The joint production cost per gallon of Cream is higher than joint production cost per gallon of Uquid skim because of Cream's higher production volume The grous-margin percentage pergation of Cream is higher than gross margin percentage pergation of Liquid skim because of Cream's higher production volume O C. The gross-margin percentage per gallon of Cream and Liquid skim are equal because joint costs are located based on the number of gallons O . The joint production cost per gallon of Cream and Liquid skim are equal because joint costs are located based on the number of ons

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