Question
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: | 33,000 gallons |
Production: | Butter Cream | 14,000 | gallons |
Condensed Milk | 19,000 | gallons | |
Sales: | Butter Cream | 13,500 | gallons |
Condensed Milk | 18,500 | gallons | |
Sales: | Butter Cream | $4.00 | per gallon |
Condensed Milk | $10.00 | per gallon | |
Separable costs in total: | Butter Cream | $17,000 | |
Condensed Milk | $34,200 |
The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 33,000 gallons of saleable product was $167,700. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $19,500 and constant gross margin was 10%, what would have been the allocated joint costs of Condensed Milk?
Question 55 options:
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$131,800
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$136,800
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$30,900
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$48,900
|
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