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A dairy operation processes raw milk into two main products: skim milk and cream. Both of these products are salable at the end of the joint process, worth $13,000 and $24,000, respectively. The skim milk can be further processed at a cost of $7,830 in order to yield sweetened condensed milk. This final product can be sold for $24,000. The cream can also be processed further, at a cost of $10,170, in order to generate butter, which is worth $43,000. If the joint process costs are $21,000, how much of the joint cost will be allocated to each product under the NRV method? (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs Skim Milk Cream

A dairy operation processes raw milk into two main products: skim milk and cream. Both of these products are salable at the end of the joint process, worth $13,000 and $24,000, respectively. The skim milk can be further processed at a cost of $7,830 in order to yield sweetened condensed milk. This final product can be sold for $24,000. The cream can also be processed further, at a cost of $10,170, in order to generate butter, which is worth $43,000. If the joint process costs are $21,000, how much of the joint cost will be allocated to each product under the NRV method? (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Allocated joint costs Skim Milk Cream

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
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Problem 25P: Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio...
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A dairy operation processes raw milk into two main products: skim milk and cream. Both of these products are salable at the end of the joint process, worth $13,000 and $24,000, respectively. The skim milk can be further processed at a cost of $7,830 in order to yield sweetened condensed milk. This final product can be sold for $24,000. The cream can also be processed further, at a cost of $10,170, in order to generate butter, which is worth $43,000. If the joint process costs are $21,000, how much of the joint cost will be allocated to each product under the NRV method? (Round proportion to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 5,125.) Allocated joint costs Skim Milk Cream
Transcribed Image Text:A dairy operation processes raw milk into two main products: skim milk and cream. Both of these products are salable at the end of the joint process, worth $13,000 and $24,000, respectively. The skim milk can be further processed at a cost of $7,830 in order to yield sweetened condensed milk. This final product can be sold for $24,000. The cream can also be processed further, at a cost of $10,170, in order to generate butter, which is worth $43,000. If the joint process costs are $21,000, how much of the joint cost will be allocated to each product under the NRV method? (Round proportion to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 5,125.) Allocated joint costs Skim Milk Cream
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