A Manufacturing Company makes three products: A and B are considered main products and C a by-product.
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Question:
A Manufacturing Company makes three products: A and B are considered main products and C a by-product.
Production and sales for the year were:
220,000 lbs. of Product A, salable at $6.00
180,000 lbs. of Product B, salable at $3.00
50,000 lbs. of Product C, salable at $.90
Production costs for the year:
Joint costs $276,600
Costs after separation:
Product A 320,000
Product B 190,000
Product C 6,900
Using the by-product revenue as a cost reduction and net realizable value method of assigning joint costs, compute unit costs (a) if C is a by-product of the process and (b) if C is a by-product of B.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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