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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: 27,500 gallons (after shrinkage) Production: 13,000 gallons 14,500 gallons Sales: 12,500 gallons Butter Cream Condensed Milk Butter Cream Condensed Milk Butter Cream Condensed Milk 14,000 gallons Sales Price: $3.50 per gallon $8.50 per gallon Separable costs Butter Cream in total: $12,500 $34,900 Condensed Milk The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 27,500 gallons of saleable product was $49,000. 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. 70.9% O B. 40.8% O C. 42.9% O D. 71.9%
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