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:

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,100.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.If separable costs of Butter Cream was $17,500 and constant gross margin was 20%,what would have been the allocated joint costs of Condensed Milk?
A)$20,900
B)$34,900
C)$92,200
D)$87,200

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:

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,100.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production.If separable costs of Butter Cream was $17,500 and constant gross margin was 20%,what would have been the allocated joint costs of Condensed Milk?
A)$20,900 
B)$34,900 
C)$92,200 
D)$87,200

Quizplus · Accepted Answer

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