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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11PB: Strawberry Sweet Company makes a variety of jams and jellies. During June, 55,000 gallons of...

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