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:

The cost of purchasing the of unprocessed milk and processing it up to the splitoff point to

yield a total of $18000$ gallons of saleable product was $$46,000.$

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?

$$10,800$

$$34,700$

$$12,500$

$$35,200$