Wisconsin Milk and Ice Cream Manufacturing operates a single plant in Sun Prairie, Wisconsin. It manufactures milk and ice cream for retail and private label marketers in the Midwest.

	Joint costs Joint costs of processing raw milk			Cream	Liquid Skim
Joint costs	$ 1,000,000
[from 300,000 gallons of milk]
Separable costs buttercream				$ 600,000
Separable costs milk					$ 500,000
Raw Milk is processed further to make Cream and Liquid Skim				Cream is processed further to make Buttercream	Liquid Skim is processed further to make Milk
	Cream	Liquid Skim		Buttercream	Milk
Beg Inventory (Gallons)	0	0		0	0
Production	100,000	150,000		90,000	125,000
Transfer	100,000	150,000
Sales in June				80,000	115,000
End inventory (Gallons)				10,000	10,000
Selling price per gallon	25	18		40	50
Required:
1). Compute the Net Realizable Value (NRV) Method
2). Compute the Product Line Income statement for month ended June using the NRV Method

Requirements:

Compute the Net Realizable Value (NRV) method.

Complete the Product Line Income statement for month ended June using the NRV Method