Question: Can someone please explain how to get $6.10. I understand everything except how to calculate the PRODUCTION COST PER GALLON. Please help. $6.10 $2.22 Natural

Can someone please explain how to get $6.10. I understand everything except how to calculate the PRODUCTION COST PER GALLON. Please help.
$6.10 $2.22 Natural Milk Products refines raw milk into cream and liquid skim. Joint costs incurred during the month of April were $2,600,000. Cream requires further processing to be marketable and hence a further processing cost of $300,000 was incurred. Liquid skim also requires further processing to be marketable and hence a further processing cost of $100,000 was incurred. Cream was sold at $10 per gallon and liquid skim at $4.00 per gallon. During the month of April, 200,000 gallons of cream and 800,000 gallons of liquid skim were processed. What is the production cost per gallon of cream for the month of April using the NRV method? Assume there was no beginning inventory. $4.60 $2.10 WHAT YOU NEED TO KNOW The production cost per gallon of cream for the month of April using the NRV method is $6.10, computed as follows: Cream Liquid skim Total Sales value of total production 2,000,000 3,200,000 Deduct separable costs (300,000) (100,000) Net realizable value at splitoff point 1,700,000 3,100,000 Weightage 0.3542 0.6458 Joint costs allocated 920,920 1,679,080 $2.22 Production cost per gallon $6.10 5,200,000 (400,000) 4,800,000 1 2,600,000
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