The Morton Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 65,000 gallons (shrinkage was 10%) Production: condensed goat milk 26,100 gallons skim goat milk 32,400 gallons condensed goat milk $3.50 per gallon skim goat milk $2.50 per gallon Sales: The costs of purchasing the 65,000 gallons of unprocessed goat milk and processing it up to the split off point to yield a total of 58,500 gallons of salable product was $72,240. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 19,500 gallons (the remainder is shrinkage) of a medicinal milk product, Xvla, for an additional processing cost of $3 per usable gallon Xyla can be sold for $18 per gallon. Skim goat milk can be processed further to yield 28,100 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $2.50. The product can be sold for $9 per gallon. 1. There are no beginning and ending inventory balances. What is the estimated net realizable value of Xyla at the splitoff point? a S182.650 b S252.900 S292,500 d $351,000 2. What is the estimated net realizable value of the skim goat ice cream at the splitoff point. a $182,650 b. $252.900 $110.200 $85,450 3 Using estimated net realizable value, what amount of the $72,240 of joint costs would be allocated Xyla and the skim goat ice cream? $41.971 and $30,269 a Chapter 16 tout cast and by product b s. d $44,471 and 527,769 S32,796 and $39.444 536,120 and 536,120 4 Using the sales value at splitoff method, what is the grous-margin percentage for condensed goat milk at the splitoff point? 21.1 B 33.1 38.1 d 3.2 5. I Using the sales value at splitoff method, what is the gross-margin percentage for skim goat milk at the splitoff point? 2.21.1% 5519 $8.1% d 38.2% b c 6 How much (if any) extra income would Morton ear if it produced and sold all of the Xyla from the condensed goat milk? Allocate joint processing costs based upon relative sales value on the splitoff (Extra income means income in excess of what Morton would have carned from selling condensed goat milk) a S53,063 b $254.213 $201.150 d 596,787 7 How much of any) extra income would Morton amifit produced and sold skim milk ice cream from goats rather than goatsku milk? Allocate joint processing costs based upon the relative sales value at the splitole point S47,047 b $117.30 5101,850 d 570 250 1 EX 16-4 1 Sugar Cane Company processes sugar beets into three products. During April, the joint costs of processing were $120.000. Production and sales value information for the month were as follows: Chapter 16: Joint cost and by product Product Units Produced Sales Value at Splito Point 40.000 6.000 Separable costs 12,000 Sugar Sugar Syrup Fructose Syrup 4,000 35.000 32.000 2.000 25.000 16.000 Required: Determine the amount of joint cost allocated to each product if the sales value at splitoff method is used