A dairy company processed raw milk for $60,000. This raw milk can be converted into the...

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A dairy company processed raw milk for $60,000. This raw milk can be converted into the following types of milk with listed sales values. Joint Products Whole milk 2% milk Skim milk Total Sales Value $ 25,000 40,000 35,000 $ 1,00,000 Use the sales value basis to (1) allocate the total cost of the raw milk to each type of milk and (2) determine the gross profit for each type of milk. Joint Products Sales Value Percent of Total Allocated Cost Gross Profit Numerator Denominator % of Total Whole milk 2% milk Skim milk Totals A dairy company processed raw milk for $60,000. This raw milk can be converted into the following types of milk with listed sales values. Joint Products Whole milk 2% milk Skim milk Total Sales Value $ 25,000 40,000 35,000 $ 1,00,000 Use the sales value basis to (1) allocate the total cost of the raw milk to each type of milk and (2) determine the gross profit for each type of milk. Joint Products Sales Value Percent of Total Allocated Cost Gross Profit Numerator Denominator % of Total Whole milk 2% milk Skim milk Totals

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Allocating Joint Costs and Determining Gross Profit Sales Value Basis 1 Allocate Total Cost We will ... View the full answer