The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk....
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The Kenton 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: 24,500 gallons (after shrinkage) Production: Butter Cream Condensed Milk Sales: Butter Cream Condensed Milk Sales Price: Butter Cream Condensed Milk Separable costs Butter Cream in total: Condensed Milk 12,000 gallons 12,500 gallons 11,500gallons 12,000 gallons $3.50per gallon $7.50per gallon $14,000 $34,700 The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 24,500 gallons of saleable product was $55,000. The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross-margin percent for Kenton? 20.4% 23.6% O 64.196 62.6%
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