Question 1. (2+1+5) a) What do the terms joint cost and split off point mean, and how do joint products differ from byproducts? b) When is the sales value at splitoff method considered preferable for allocating joint costs to individual products and why? c) The Alex 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: The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 102,500 gallons of saleable product was $190,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 44,500 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of \$6 per usable gallon. Xyla can be sold for $20 per gallon. Skim goat milk can be processed further to yield 56,200 gallons of skim goat milk ice cream, for an additional processing cost per usable gallon of $6. The product can be sold for $11 per gallon. There are no beginning and ending inventory balances. Required: Using the sales value at split-off method, what is the gross-margin percentage for condensed goat milk at the split-off point? (Round intermediary percentages to the nearest hundredth.) Question 1. (2+1+5) a) What do the terms joint cost and split off point mean, and how do joint products differ from byproducts? b) When is the sales value at splitoff method considered preferable for allocating joint costs to individual products and why? c) The Alex 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: The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 102,500 gallons of saleable product was $190,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 44,500 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of \$6 per usable gallon. Xyla can be sold for $20 per gallon. Skim goat milk can be processed further to yield 56,200 gallons of skim goat milk ice cream, for an additional processing cost per usable gallon of $6. The product can be sold for $11 per gallon. There are no beginning and ending inventory balances. Required: Using the sales value at split-off method, what is the gross-margin percentage for condensed goat milk at the split-off point? (Round intermediary percentages to the nearest hundredth.)