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what is correct answer? (0.4) The Gows Company processes unprocessed goat milk up to the splitoff point where two products, condensed goat milk and skim
what is correct answer?
(0.4) The Gows 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: 130.000 gallons (shrinkage was 10%) Production Sales condensed goat milk $2,200 gallons $3.50 per gallon skim goat milk 64.800 gallons $2.50 per gallon The costs of purchasing the 130,000 gallons of unprocessed goat milk and processing it up to the splitoff point to yield a total of 117.000 gallons of salable product was $144.480. There were no inventory balances of either product Condensed goat milk may be processed further to yield 39,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $3 per usable gallon Xyla can be sold for S18 per gallon Skim goat milk can be processed further to yield 56,200 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. a. Using the sales value at splitoff method, allocate the joint cost (S144,480) to condensed goat milk and skim goat milk condensed goat milk skim goat milk Sales value at split-eff Weights Joint costs allocated b. Using the sales valoe at splitoff method, calculate gross-margin percentage for skim goat milk at the spinoff point. milk c. Using net realizable value method, allocate the joint cost ($144,480) to condensed goat milk and skim goat condensed goat milk skim goat milk Final sales value Net realizable value at split-of Weights Joint costs allocated d. How much (if any) extra income would the company cam if it produced and sold all of the Xyla from the condensed goat milk (instead of selling condensed goat milk)? 5 Step by Step Solution
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