The company uses constant gross margin percentage NRV method to allocate the joint costs of...
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Accounting
The company uses constant gross margin percentage NRV method to allocate the joint costs of production. 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:
Production 31,000 gallons
Production
Butter Cream
15,000
Condensed milk
16,000
Sales
Butter cream
14,500
Condensed milk
15,500
Sales
Butter cream
$3.50
Condensed milk
$8.00
Separable costs at splitoff point
Butter cream
$14,500
Condensed milk
$36,000
The costs of purchasing the of unprocessed milk and processing it up to the splitoff point to yield a total of 31,000 gallons of saleable product was $52,000. The company uses the constant gross margin percentage NRV method to allocate the joint costs of production. What is the constant gross margin percent for Brital?
Group of answer choices
39%
51%
43%
72%
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