The Kenton 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: 24,500 gallons (after shrinkage)

The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 24,500 gallons of saleable product was $55,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.What is the constant gross-margin percent for Kenton?
A)64.1%
B)20.4%
C)23.6%
D)62.6%

Question

The Kenton 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: 24,500 gallons (after shrinkage)

The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 24,500 gallons of saleable product was $55,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.What is the constant gross-margin percent for Kenton?
A)64.1% 
B)20.4% 
C)23.6% 
D)62.6%

Quizplus · Accepted Answer

11ea8a5a_a0b5_5700_a19c_6be15d8ae303_TB5540_00_TB5540_00_TB5540_00

The Kenton Company Processes Unprocessed Milk to Produce Two Products,Butter