The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following
Question:
The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:
Direct Materials processed: 28,000 gallons
Production: | Butter Cream | 12,500 | gallons |
| Condensed Milk | 15,500 | gallons |
Sales: | Butter Cream | 12,000 | gallons |
| Condensed Milk | 15,000 | gallons |
Sales: | Butter Cream | $2.5 | per gallon |
| Condensed Milk | $5.5 | per gallon |
The costs of purchasing the of unprocessed milk and processing it up to the splitoff point to yield a total of 28,000 gallons of saleable product was $46,000.
1-a) If the company uses sales value at splitoff method to allocate the joint costs of production, what is the allocated joint costs of Butter Cream?
1-b) If the company uses sales value at splitoff method to allocate the joint costs of production, what is the allocated joint costs of Condensed Milk?
1-c). Using the physical-measure method, what is Butter Cream's approximate gross-margin percentage?
Expert Answer:
SOLUTION SOLD QUANTITY OF BUTTER CREAM SOLD QUANTITY OF CONDENSED MILK 12000 GALLONS ... View the full answer
