The Brital 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:31,500 gallons

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 31,500 gallons of saleable product was $109,025.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $19,000 and constant gross margin was 30%, what would have been the total allocated joint costs of production?
A) $109,025
B) $35,600
C) $97,400
D) $163,625

Question

The Brital 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:31,500 gallons

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 31,500 gallons of saleable product was $109,025.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $19,000 and constant gross margin was 30%, what would have been the total allocated joint costs of production?
A) $109,025 
B) $35,600 
C) $97,400 
D) $163,625

Quizplus · Accepted Answer

11ea1398_f0d6_6396_a1e4_0b54bcc414a4_TB3027_00

The Brital Company Processes Unprocessed Milk to Produce Two Products