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Homework answers / question archive / Date 11 production The Green Company processes unprocessed goat milk up to the spirit of point where two products
Date 11 production The Green Company processes unprocessed goat milk up to the spirit of point where two products. condensed goat mile and skim jos mik result. The following information was collected for the month of October ct Materials processed 104.000 gallons (after shrinkage Condensed goat milk 45,500 gallons Skim goat milk 58 500 gallons Sales Condensed goat milk $5.00 per gallon Skim goat milk $4.50 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split off point to yield a total of 104.000 gallons of saleable product was $186,480. There were no inventory balances of either product. Condensed goat milk may be processed further to yield 48.000 gallons (the remainder is shrinkage) of a medicinal milk product xyla, for an additional processing cost of 34 per usable gallon ya can be salt for $19 per gallon Skim goat milk can be processed further to yield 57.200 gallons of skim goat ice cream, for an additional processing cost per usable gallon of 50. The product can be sold for $9 per gallon There he no beginning and ending inventory balances. Using estimated net realizable value, what amount of the joint costs would be allocated Xyla and the skim goat ice cream Round intermediary percentage calculations to the nearest hundredth. Select one O. 5675.000 and $286,000 b. 586.448 and $100.032 c5130.984 and 555,496 d. $93.240 and 93.240 Clear my.choice
Answer: c. $130,984 and $55,496.
Explanation:
Xyla | Skim goat ice cream | |
Sale price per unit after further processing | $19 | $9 |
Less: Further processing cost per unit | ($4) | ($4) |
Estimated realizable value per unit | $15 | $5 |
* units | 45,000 gallons | 57,200 gallons |
Total realizable value | $675,000 | $286,000 |
Weights | [$675,000 / ($675,000 + $286,000)] = 70.24 % | [$286,000 / ($675,000 + $286,000)] = 29.76 % |
Joint Cost allocation for Xyla = $186,480 * 70.24 % = $130,984
Joint Cost allocation for Skim goat ice cream = $186,480 * 29.76 % = $55,496