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:
Direct Materials processed:29,500 gallons

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 29,500 gallons of saleable product was $49,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross margin percent for Brital?
A) 66%
B) 29%
C) 32%
D) 41%

Question

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:
Direct Materials processed:29,500 gallons

The costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 29,500 gallons of saleable product was $49,000.
The company uses constant gross-margin percentage NRV method to allocate the joint costs of production. What is the constant gross margin percent for Brital?
A) 66% 
B) 29% 
C) 32% 
D) 41%

Quizplus · Accepted Answer

11ea1398_f0d6_156d_a1e4_d3914bf4d16d_TB3027_00

The Brital Company Processes Unprocessed Milk to Produce Two Products