rect materials processed: duction: Cream Liquid skim Cream Liquid skim es: 780,000 gallons (758,500 gallons of good product) 443,500 gallons 315,000 gallons 425,500 at $110 per gallon 305,000 at $95 per gallon t of purchasing 780,000 gallons of direct materials and processing it up to the split-off poi a total of 758,500 gallons of good product was $2,310,000. When using a physical-volum e, what is the approximate amount of joint costs that will be allocated to cream and liquid Round intermediary percentages to the nearest hundredth.) -,313,442 and $996,558 1,345,524 and $964,476 B) $1,350,657 and $959,343 D) $1,155,000 and $1,155,000
rect materials processed: duction: Cream Liquid skim Cream Liquid skim es: 780,000 gallons (758,500 gallons of good product) 443,500 gallons 315,000 gallons 425,500 at $110 per gallon 305,000 at $95 per gallon t of purchasing 780,000 gallons of direct materials and processing it up to the split-off poi a total of 758,500 gallons of good product was $2,310,000. When using a physical-volum e, what is the approximate amount of joint costs that will be allocated to cream and liquid Round intermediary percentages to the nearest hundredth.) -,313,442 and $996,558 1,345,524 and $964,476 B) $1,350,657 and $959,343 D) $1,155,000 and $1,155,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4) 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:
Cream
Production:
Liquid skim
Cream
Liquid skim
Sales:
780,000 gallons (758,500 gallons of good product)
443,500 gallons
315,000 gallons
425,500 at $110 per gallon
305,000 at $95 per gallon
The cost of purchasing 780,000 gallons of direct materials and processing it up to the split-off point
to yield a total of 758,500 gallons of good product was $2,310,000. When using a physical-volume
measure, what is the approximate amount of joint costs that will be allocated to cream and liquid
skim? (Round intermediary percentages to the nearest hundredth.)
A) $1,313,442 and $996,558
B) $1,350,657 and $959,343
C) $1,345,524 and $964,476
D) $1,155,000 and $1,155,000
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