Serene Dairy has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is $45,000, which has been allocated based on the gallons of milk base used by each product. Results for July follow: How much are total joint costs of the products?
A)$28,000
B)$17,000
C)$45,000
D)$15,000

Question

Serene Dairy has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is $45,000, which has been allocated based on the gallons of milk base used by each product. Results for July follow:  How much are total joint costs of the products?
A)$28,000 
B)$17,000 
C)$45,000 
D)$15,000

Quizplus · Accepted Answer

The total joint cost of producing the milk base for all four product lines is $45,000, as stated in the problem. Therefore, the correct answer is C.

Serene Dairy Has Four Product Lines: Sour Cream, Ice Cream