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

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

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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What is the estimated net realizable value of Xyla at the split-off point?

What is the estimated net realizable value of the skim goat ice cream at the split-off point?

Using estimated net realizable value, what amount of the joint costs would be allocated Xyla

Using estimated net realizable value, what amount of the joint costs would be allocated Skim goat ice cream?

Using the sales value at split-off method, what is the gross-margin percentage for condensed goat milk at the split-off point?

The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat millk 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 42,500 gallons 58,000 gallons Condensed goat milk $4.00 per gallon $3.50 per gallon Production: Skim goat milk Sales: Skim goat milk 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, Xxla, 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.
Transcribed Image Text:The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat millk 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 42,500 gallons 58,000 gallons Condensed goat milk $4.00 per gallon $3.50 per gallon Production: Skim goat milk Sales: Skim goat milk 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, Xxla, 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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