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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