Question
The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of
The Kenton 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: 20,500 gallons (after shrinkage) Production: Butter Cream Condensed Milk 9,500 gallons 11,000 gallons Sales: Butter Cream 9,000 gallons Condensed Milk 10,500 gallons Sales Price: Butter Cream Condensed Milk $5.50 per gallon $7.50 per gallon Separable costs in Butter Cream total: $14,000 Condensed Milk $34,900 This question: 5 point(s) possible The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 20,500 gallons of saleable product was $55,000. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Condensed Milk? (Round intermediary percentages to the nearest hundredth.) OA. $26,290 OB. $34,900 OC. $28,716 OD. $14,000 Time Romain
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