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The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:
The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Direct Materials processed: 30,000 gallons Production: Butter Cream Condensed Milk Sales: Butter Cream Condensed Milk Sales: Butter Cream Condensed Milk Separable costs in Butter Cream total: Condensed Milk 13,500 16,500 13,000 16,000 $3.00 $9.50 $15,000 gallons gallons gallons gallons per gallon per gallon $35.900 --- O A. The gross profit percent of condensed milk is lower than the gross profit of buttercream. O B. The gross profit of condensed milk lower than the gross profit of butter cream. OC. The gross margin is allocated to the joint products in order to determine the joint - cost allocations. OD. The gross margin is same for both products because constant gross margin percentage NRV method ignores profits earned before the split - off point
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