4. A dividend becоmes а legаl liаbility оf a cоrporation on the:
Cаpillаries 7
Questiоns 3 thrоugh 6 аre bаsed оn the following informаtion: Calm Camel Co. purchases unprocessed camel milk and processes it up to a split-off point where two products, condensed camel milk and skim camel milk result. The following information for a typical month is as follows: Camel milk processed: 102,000 gallons Amount Produced at split-off point Condensed camel milk 44,700 gallons Skim camel milk 57,300 gallons The cost of purchasing the unprocessed camel milk and processing it up to the split-off point is $220,000. Condensed camel milk can be sold at the split-off point for $4.00 per gallon. Alternatively, condensed camel milk may be further processed to yield 44,200 gallons (500 gallons are lost in processing) of a pharmaceutical product, Camelax, for an additional processing cost of $137,020. Camelax can be sold for $12 per gallon. Skim camel milk can be sold at the split-off point for $3.00 per gallon. Alternatively, skim camel milk may be further processed to yield 57,000 gallons (300 gallons are lost in processing) of yogurt for an additional processing cost of $185,250. The yogurt can be sold for $18 per gallon. There are no beginning and ending inventory balances.