(Solved): The Atlanta Company processes unprocessed goat milk up to the split-off point where two products, c ...

The Atlanta Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. Total cost of purchasing and processing 120,000 gallons of goat milk in Joint Process was \( \$ 144,000 \) which resulted into 35,640 gallons of goat milk and 72,360 gallons of skim goat milk (the remaining materials was shrinkage). Additional shrinkage occurred during additional processing as follows: Condensed 35,640 gallons of goat milk is processed further at \( \$ 3.60 \) per galion to yield 33,600 gallons of a medicinal milk product, called Xyla (the remainder is shrinkage). Xyla can be soid for \( \$ 21.60 \) per gallon. The 72,360 gallons of Skim goat milk can be processed further at \( \$ 2.40 \) per gallon to yield 64,800 gallons of skim goat ice cream. Each gailon of skim goat ice cream can be sold for \( \$ 14.40 \) per gallon. The following information was collected for the month of March: Using estimated net realizable value, what amount of the \( \$ 144,000 \) of joint costs would be allocated to Xyla? Round ratios (example. \( 35 \% \) or \( 0.351 \)