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ABC Corporation processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Production: • Butter Cream: 12,000 gallons • Condensed Milk: 16.000 gallons Sales in gallons: Butter Cream: 11,500 gallons • Condensed Milk: 15,500 gallons Sales per gallon: • Butter Cream: $4 per gallon . . Condensed Milk: $10 per gallon Separable costs in total: Butter Cream: $17,500 • Condensed Milk: $35,500 The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,400. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $17,500 and constant gross margin was 20%, what would have been the allocated joint costs of Condensed Milk?

ABC Corporation processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Production: • Butter Cream: 12,000 gallons • Condensed Milk: 16.000 gallons Sales in gallons: Butter Cream: 11,500 gallons • Condensed Milk: 15,500 gallons Sales per gallon: • Butter Cream: $4 per gallon . . Condensed Milk: $10 per gallon Separable costs in total: Butter Cream: $17,500 • Condensed Milk: $35,500 The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,400. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $17,500 and constant gross margin was 20%, what would have been the allocated joint costs of Condensed Milk?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corporation processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Production: • Butter Cream: 12,000 gallons • Condensed Milk: 16.000 gallons Sales in gallons: Butter Cream: 11,500 gallons • Condensed Milk: 15,500 gallons Sales per gallon: • Butter Cream: $4 per gallon . • Condensed Milk: $10 per gallon Separable costs in total: Butter Cream: $17,500 • Condensed Milk: $35,500 The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,400. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $17,500 and constant gross margin was 20%, what would have been the allocated joint costs of Condensed Milk?
Transcribed Image Text:ABC Corporation processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Production: • Butter Cream: 12,000 gallons • Condensed Milk: 16.000 gallons Sales in gallons: Butter Cream: 11,500 gallons • Condensed Milk: 15,500 gallons Sales per gallon: • Butter Cream: $4 per gallon . • Condensed Milk: $10 per gallon Separable costs in total: Butter Cream: $17,500 • Condensed Milk: $35,500 The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 28,000 gallons of saleable product was $113,400. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. If separable costs of Butter Cream was $17,500 and constant gross margin was 20%, what would have been the allocated joint costs of Condensed Milk?
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