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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: 22,500 gallons (after shrinkage) Production: Sales Butter Cream Condensed Milk Butter Cream Condensed Milk Butter Cream Condensed Milk Butter Cream Condensed Milk 12,000 gallons 10,500 gallons 11,500 gallons 10,000 gallons $3.50 per gallon $9.00 per gallon $15,000 $35,800 Sales Price: Separable costs in total: The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 22,500 gallons of saleable product was $51,000. 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.) O A. $34,678 O B. $35,800 O C. $15,000 OD. $16,324
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