The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 100,500 gallons (after shrinkage) Condensed goat milk Skim goat milk Condensed goat milk Skim goat milk 42,500 gallons 58,000 gallons $4.00 per gallon $3.50 per gallon Production: Sales: The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 100,500 gallons of saleable product was $191,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $6 per usable gallon. Xxla can be sold for $21 per gallon. Skim goat milk can be processed further to yield 56,700 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $6. The product can be sold for $14 per gallon. There aro no boginning and onding invontory halancoe

The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 100,500 gallons (after shrinkage) Condensed goat milk Skim goat milk Condensed goat milk Skim goat milk 42,500 gallons 58,000 gallons $4.00 per gallon $3.50 per gallon Production: Sales: The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 100,500 gallons of saleable product was $191,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $6 per usable gallon. Xxla can be sold for $21 per gallon. Skim goat milk can be processed further to yield 56,700 gallons of skim goat ice cream, for an additional processing cost per usable gallon of $6. The product can be sold for $14 per gallon. There aro no boginning and onding invontory halancoe

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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Question

A-What is the estimated net realizable value of Xyla at the split-off point? B-What is the estimated net realizable value of the skim goat ice cream at the split-off point? C-Using estimated net realizable value, what amount of the joint costs would be allocated Xyla

The Green Company processes unprocessed goat milk up to the split-off point where two products,
condensed goat milk and skim goat milk result. The following information was collected for the month of
October:
Direct Materials processed:
100,500 gallons (after shrinkage)
Condensed goat milk
Skim goat milk
Condensed goat milk
Skim goat milk
42,500 gallons
58,000 gallons
$4.00 per gallon
$3.50 per gallon
Production:
Sales:
The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a
total of 100,500 gallons of saleable product was $191,480. There were no inventory balances of either
product. Condensed goat milk may be processed further to yield 42,000 gallons (the remainder is
shrinkage) of a medicinal milk product, Xyla, for an additional processing cost of $6 per usable gallon.
Xxla can be sold for $21 per gallon.
Skim
goat milk can be processed further to yield 56,700 gallons of skim goat ice cream, for an additional
processing cost per usable gallon of $6. The product can be sold for $14 per gallon.
There are no beginning and ending inventory balances.

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