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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: 24,500 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 11,500 13,000 11,000 12,500 $4.50 $8.00 $13,000 gallons gallons gallons gallons per gallon per gallon -learn $34,800 --L ' IL IT. - -I- -IRACAN -- --- - -- cnnn O A. $33.840 O B. $34.800 OC. $13,000 OD. $21.155 The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 24,500 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.)
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