The Rich and Creamy Edibles Factory manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk-chocolate liquor base. These two intermediate products become separately identifiable at a single split off point. Every 600 pounds of cocoa beans yields 20 gallons of chocolate-powder liquor base and 60 gallons of milk-chocolate liquor base which are further processed to chocolate powder and milk chocolate

Cocoa beans processed, 27,600 pounds

Costs of processing cocoa beans to split off point (including purchase of beans), $70,000

	Production	Sales	Selling Price	Separable Processing Cost
Chocolate powder	31280 pounds	6800	$8	$46,035
Milk Chocolate	50,600 pounds	14,400	$9	$55,085

Using constant gross margin percentage to allocate joint cost, the joint cost allocated to chocolate powder and milk powder would be as follows:

Select one:

a. None

b. 14695 and 55350

c. 26742 and 43258

d. 27645 and 42355

e. 24824 and 45176