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The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream? (Round intermediary percentages to the nearest hundredth.)

The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream? (Round intermediary percentages to the nearest hundredth.)

FINANCIAL ACCOUNTING
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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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: 27,500 gallons (after shrinkage) Production: Sales: Sales Price: Separable costs in total: A. $35,600 B. $19,428 Butter Cream C. $33,580 Condensed Milk D. $13,000 Butter Cream Condensed Milk Butter Cream Condensed Milk Butter Cream Condensed Milk 12,500 15,000 gallons 12,000 14,500 $4.50 $8.00 $13,000 gallons $35,600 The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 27,500 gallons of saleable product was $53,000. gallons The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream? (Round intermediary percentages to the nearest hundredth.) gallons per gallon per gallon
Transcribed Image Text: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: 27,500 gallons (after shrinkage) Production: Sales: Sales Price: Separable costs in total: A. $35,600 B. $19,428 Butter Cream C. $33,580 Condensed Milk D. $13,000 Butter Cream Condensed Milk Butter Cream Condensed Milk Butter Cream Condensed Milk 12,500 15,000 gallons 12,000 14,500 $4.50 $8.00 $13,000 gallons $35,600 The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 27,500 gallons of saleable product was $53,000. gallons The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream? (Round intermediary percentages to the nearest hundredth.) gallons per gallon per gallon
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