The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The...

The Brital 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: 28,000 gallons

Production:	Butter Cream	12,500	gallons
	Condensed Milk	15,500	gallons
Sales:	Butter Cream	12,000	gallons
	Condensed Milk	15,000	gallons
Sales:	Butter Cream	$2.5	per gallon
	Condensed Milk	$5.5	per gallon

The costs of purchasing the of unprocessed milk and processing it up to the splitoff point to yield a total of 28,000 gallons of saleable product was $46,000.

1-a) If the company uses sales value at splitoff method to allocate the joint costs of production, what is the allocated joint costs of Butter Cream?

1-b) If the company uses sales value at splitoff method to allocate the joint costs of production, what is the allocated joint costs of Condensed Milk?

1-c). Using the physical-measure method, what is Butter Cream's approximate gross-margin percentage?

Expert Solution

ekkarill92 answered 2 years ago

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