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Business, 17.04.2020 04:56 ruslffdr

Natural Milk Products refines raw milk into cream and liquid skim. Joint costs incurred during the month of April were $2,600,000. Cream requires further processing to be marketable and hence a further processing cost of $300,000 was incurred. Liquid skim also requires further processing to be marketable and hence a further processing cost of $100,000 was incurred. Cream was sold at $10 per gallon and liquid skim at $4.00 per gallon. During the month of April, 200,000 gallons of cream and 800,000 gallons of liquid skim were processed. What is the production cost per gallon of cream for the month of April using the NRV method

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