Question 8: Little Miss Muppet. is a company that makes products from milk. They first process milk into “curds” and “whey” and then turn the curds into cheese and the whey into protein powder. Managers have this information about the production of these products for the month of May: There is no beginning inventory for any of the products. During the month, they can turn 240,000 pounds of milk into 49,000 pounds of curds and 147,000 pounds of whey for a total cost of $245,000
• If they were to sell the curds as is, they would be able to sell 42,000 pounds for $252.000
• If they were to sell the whey as is, they would be able to sell 80,000 pounds for $3 a pound . If they make the cheese, they would be able to produce 20,000 pounds for $180,000 and would be able to sell 12,000 pounds for $18 each
• If they make the protein powder, they would be able to produce 50,000 pounds for $280,000 and would be able to sell 30,000 pounds for $360,000 With this information, please find the:
e. How much Joint Cost would be allocated to Cheese under the NRV method
1. How much Joint Cost would be allocated to Protein Powder under the NRV method
8. The Total Gross Profit from Cheese under the NRV method:
h. The Total Gross Profit from Protein Powder under the NRV method. Get Finance homework help today
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