Dairy Fresh makes a variety of dairy products. During June, 45,000 gallons of raw milk were...

  

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Dairy Fresh makes a variety of dairy products. During June, 45,000 gallons of raw milk were processed at a joint cost of $36,000. This produced 36,000 gallons of skim milk and 4,000 gallons of cream. The cream could be processed further into butter and the skim milk could be processed further into farmer's cheese. Information on these items follows: Skim Milk Cream Sales Value At Split-off Point $94,500 40,500 Estimated Further Processing Cost $10,000 40,000 Sales Value After Processing $115,000 70,000 Assume that the joint cost is allocated to the products based on the physical quantity of output of each product. How much joint cost should be assigned to each product? How much joint cost should be assigned to each product if the relative sales value allocation method is used? Skim milk Cream $ $ Which products should be processed further? should be processed further. Dairy Fresh makes a variety of dairy products. During June, 45,000 gallons of raw milk were processed at a joint cost of $36,000. This produced 36,000 gallons of skim milk and 4,000 gallons of cream. The cream could be processed further into butter and the skim milk could be processed further into farmer's cheese. Information on these items follows: Skim Milk Cream Sales Value At Split-off Point $94,500 40,500 Estimated Further Processing Cost $10,000 40,000 Sales Value After Processing $115,000 70,000 Assume that the joint cost is allocated to the products based on the physical quantity of output of each product. How much joint cost should be assigned to each product? How much joint cost should be assigned to each product if the relative sales value allocation method is used? Skim milk Cream $ $ Which products should be processed further? should be processed further.