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: 800,000 gallons (778,500 gallons of good product) Production: Cream 443,500 gallons Liquid skim 335,000 gallons Sales: Cream 424,500 at $13 per gallon Liquid skim 324,000 at $12 per gallon The cost of purchasing 800,000 gallons of direct materials and processing it up to the split-off point to yield a total of 778,500 gallons of good product was $2,350,000. The Alfarm Corporation uses sales value at split off point method of allocating joint costs. What is the value of ending inventory for liquid skim? If you can’t Group of answer choices 59,317 19,000 28,713 31,700
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: 800,000 gallons (778,500 gallons of good product)
Production: Cream 443,500 gallons
Liquid skim 335,000 gallons
Sales: Cream 424,500 at $13 per gallon
Liquid skim 324,000 at $12 per gallon
The cost of purchasing 800,000 gallons of direct materials and processing it up to the split-off point to yield a total of 778,500 gallons of good product was $2,350,000. The Alfarm Corporation uses sales value at split off point method of allocating joint costs. What is the value of ending inventory for liquid skim?
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