Reference no: EM132462179

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 processes = 33,000 gallons

Production

Butter cream = 13,000 gallons

Condensed milk = 20,000 gallons

Sales

Butter cream = 12,500 gallons

Condensed milk = 19,500 gallons

Sales

Butter cream = $4.5 per gallon

Condensed milk = $6.0 per gallon

Separable costs in total

Butter cream = $15,500

Condensed milk = $35,800

• The costs of purchasing the of unprocessed milk and processing it up to the split off point to yield a total of 33,000 gallons of saleable product was $47,000.

Question 1: 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. 54%

b. 45%

c. 71%

d. 43.3%