Answer the following question using the information below: The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February: Direct materials processed: 750,000 gallons (727,500 gallons of good product) Production: Cream 442,500 gallons Liquid skim 285,000 gallons Sales: Cream 421,500 at $110 per gallon Liquid skim 273,000 at $100 per gallon The cost of purchasing 750,000 gallons of direct materials and processing it up to the split-off point to yield a total of 727,500 gallons of good product was $2,280,000. When using a physical-volume measure, what is the
Answer the following question using the information below:
The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February:
Direct materials processed: 750,000 gallons (727,500 gallons of good product)
Production: Cream 442,500 gallons
Liquid skim 285,000 gallons
Sales: Cream 421,500 at $110 per gallon
Liquid skim 273,000 at $100 per gallon
The cost of purchasing 750,000 gallons of direct materials and processing it up to the split-off point to yield a total of 727,500 gallons of good product was $2,280,000.
When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim?
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