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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 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: 26,500 gallons (after shrinkage) Production: Butter Cream Condensed Milk Sales: Butter Cream Condensed Milk Sales Price: Butter Cream Condensed Milk Separable costs in Butter Cream total: Condensed Milk 12,000 14,500 11,500 14,000 $4.00 $8.50 $13,000 gallons gallons gallons gallons per gallon per gallon $36.000 The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 26,500 gallons of saleable product was $52,000. The company uses constant gross - margin percentage NRV method to allocate the joint costs of production. What is the constant gross - margin percent for Kenton? O A. 71.4% OB. 41% OC. 38.8% OD. 70.3%
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