The Happy 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: 28,000 gallons Production: Butter Cream 12,500 gallons Condensed Milk 15,500 gallons Sales: Butter Cream 12,000 gallons Condensed Milk 15,000 gallons Sales: Butter Cream $2.5 per gallon Condensed Milk $5.5 per gallon Separable costs in total: Butter Cream $13,500 Condensed Milk $33,700 The costs of purchasing the of unprocessed milk and processing it up to the splitoff point to yield a total of 28,000 gallons of saleable product was $46,000.

1. The costs of purchasing the of unprocessed milk and processing it up to the splitoff point to yield a total of 28,000 gallons of saleable product was $46,000. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was 16,000 and constant gross margin was 25%, what would have been the allocated joint costs of Condensed Milk?

Question 28 options:

a)

$37,675

b)

$33,700

c)

$30,238

d)

$34,500

e)

$30,940

2.The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream?

Question 30 options:

a)

$34,500

b)

$13,500

c)

$33,700

d)

$11,500

e)

$11,850