River Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold
Fantastic news! We've Found the answer you've been seeking!
Question:
River Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold for industrial use. Both products are sold at the split off point. River Resources started November 2017 with no inventories and spent $ 590000 on operations that month. Production and sales information for November are given below: cost accounting
Transcribed Image Text:
What is the gross margin for River Resources, Inc., under the production method and the sales method of accounting for byproducts? Production Sales method method Revenues Main product $ 669,240 $ 669,240 Byproduct 60,800 Total revenues 669,240 730,040 Cost of goods sold Total manufacturing costs 590,000 590,000 88,350 Deduct value of byproduct production Net manufacturing costs 501,650 590,000 110,363 110363 Deduct main product inventory 391,287 479637 Cost of goods sold 277,953 250403 Gross margin What is the gross margin for River Resources, Inc., under the production method and the sales method of accounting for byproducts? Production Sales method method Revenues Main product $ 669,240 $ 669,240 Byproduct 60,800 Total revenues 669,240 730,040 Cost of goods sold Total manufacturing costs 590,000 590,000 88,350 Deduct value of byproduct production Net manufacturing costs 501,650 590,000 110,363 110363 Deduct main product inventory 391,287 479637 Cost of goods sold 277,953 250403 Gross margin
Expert Answer:
Answer rating: 100% (QA)
Production Method Sales Method Revenues Man product 669240 6... View the full answer
Posted Date:
Students also viewed these general management questions
-
Punch Limited, a South African, juice making company, purchased 8 new industrial juicing machines to use in the production and manufacturing of juice. The juicers were imported from a supplier in...
-
Tusa Waesu produces Cake stands that can be sold for K80 each. Non-depreciation fixed costs are K1,000 per year and variable costs are K60 per unit. Required: a. If the project requires an initial...
-
Nexas Division A produces a product that can be sold for $200 or transferred to Division B as a component for its product. Division B can buy the part from another suppler at $180. In the current...
-
An average of three small businesses go bankrupt each month. What is the probability that five small businesses will go bankrupt in a certain month?
-
Product A is normally sold for $ 9.60 per unit. A special price of $ 7.20 is offered for the export market. The variable production cost is $ 5.00 per unit. An additional export tariff of 15% of...
-
This is a comprehensive project evaluation problem bringing together much of what you have learned in this and previous chapters. Suppose you have been hired as a financial consultant to Defense...
-
Morgan Electronics Inc. is in the process of setting a selling price on a new CDL. component it has just developed. The following cost estimates for this component have been provided by the...
-
Employees at your company disagree about the accounting for sales returns. The sales manager believes that granting more generous return provisions and allowing customers to order items on a bill and...
-
Which condition would prove ADEF AJKL? 2 A DE: JK=1:3 B DF: JL = 1:3 EF: KL 3:1 21 D DF: JL = 3:1 D E K zoom in 7 L F
-
The trial balance of Rosiak Fashion Center contained the following accounts at November 30, the end of the companys fiscal year. Adjustment data: 1. Supplies on hand totaled 2,100. 2. Depreciation is...
-
A foundation announces that it will be offering one scholarship every year for an indefinite number of years. The first scholarship is to be offered exactly one year from now. When the scholarship is...
-
Mara Alcntara entered the Mexican University of Sciences and Arts to study a 12-semester degree with a semester tuition of 100,000. As financial aid, the student obtained a 30% scholarship and a 30%...
-
A particle moves along a straight line and its position at time t is given by s(t) = 2t3 - 18t + 48t where s is measured in feet and t in seconds. Find the velocity (in ft/sec) of the particle at...
-
Concerns about job disruption have become all too familiar and the impact on us - on our sense of self, our take-home pay, and future careers - are all too real. 1- The degree of disruption dictates...
-
Find the critical value(s) of f(x) = 6x-x. Give exact answers, and separate multiple answers with a comma. f has critical values at x=
-
What strategies can pursue to have a more competitve advantage?
-
Pina Colada Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Pina Colada's inventory consists of 230 books purchased at $19 each. Pina Colada uses a perpetual...
-
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
-
Two years ago, a ship owned by a foreign company ran aground during a severe storm and sank at the entrance of a Canadian harbour. The vessel blocked the entrance to the harbour and spilled...
-
Direct labour is often accounted for at the gross wage rate, and the related benefit costs such as employer payroll taxes and employer contributions to health care plans are accounted for as part of...
-
Cubs Incorporated manufactures a product with a selling price of $60 per unit. Units and monthly cost data follow: Cubs Inc. pays all bills in the month incurred. All sales are on account with 50...
Study smarter with the SolutionInn App