The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk....
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Accounting
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: 27,500 gallons (after shrinkage)
Production:
Butter Cream
12,500
gallons
Condensed Milk
15,000
gallons
Sales:
Butter Cream
12,000
gallons
Condensed Milk
14,500
gallons
Sales Price:
Butter Cream
$4.50
per gallon
Condensed Milk
$8.00
per gallon
Separable costs in total:
Butter Cream
$13,000
Condensed Milk
$35,600
The cost of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 27,500 gallons of saleable product was $53,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the allocated joint costs of Butter Cream? (Round intermediary percentages to the nearest hundredth.)
A.
$35,600
B.
$19,428
C.
$33,580
D.
$13,000
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