The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed...
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The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October Direct materials processed: Production: Sales: Condensed goat milk Skim goat milk Condensed goat milk Skim goat milk 99,500 gallons (after shrinkage) 43,500 gallons 56,000 gallons $4.75 per gallon $4.00 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 99,500 gallons of saleable product was $184,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 43,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $7 per usable gallon. Xyla can be sold for $25 per gallon. Skim goat milk can be processed further to yield 54,700 gallons of skim goat milk ice cream, for an additional processing cost per usable gallon of $7. The product can be sold for $13 per gallon. There are no beginning and ending inventory balances. Using estimated net realizable value, what amount of the joint costs would be allocated Xyla and the skim goat milk ice cream? (Round intermediary percentage calculations to the nearest hundredth.) The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October Direct materials processed: Production: Sales: Condensed goat milk Skim goat milk Condensed goat milk Skim goat milk 99,500 gallons (after shrinkage) 43,500 gallons 56,000 gallons $4.75 per gallon $4.00 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 99,500 gallons of saleable product was $184,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 43,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $7 per usable gallon. Xyla can be sold for $25 per gallon. Skim goat milk can be processed further to yield 54,700 gallons of skim goat milk ice cream, for an additional processing cost per usable gallon of $7. The product can be sold for $13 per gallon. There are no beginning and ending inventory balances. Using estimated net realizable value, what amount of the joint costs would be allocated Xyla and the skim goat milk ice cream? (Round intermediary percentage calculations to the nearest hundredth.)
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