The Kenton 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**: 21,000 gallons (after shrinkage)**Production**:- Butter Cream: 9,000 gallons- Condensed Milk: 12,000 gallons**Sales**:- Butter Cream: 8,500 gallons- Condensed Milk: 11,500 gallons**Sales Price**:- Butter Cream: $5.50 per gallon- Condensed Milk: $10.00 per gallon**Separable Costs in Total**:- Butter Cream: $15,000- Condensed Milk: $35,000The cost of purchasing the unprocessed milk and processing it up to the split-off point to yield a total of 21,000 gallons of saleable product was $53,000.The company uses the constant gross-margin percentage NRV method to allocate the joint costs of production. The task is to find the allocated joint costs of Condensed Milk, rounding intermediary percentages to the nearest hundredth.

Solution:- Calculation of the allocated joint costs of Condensed Milk as follows under:-…

Answered: he Kenton Company processes unprocessed…

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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