Logan Company manufactures one main product and two by-products, A and B. For April, the following data are available:

Profit allowed for A and B is 15% and 12%, respectively.
Required:
(1) Calculate manufacturing cost before separation for by-products A and B, using the market value (reversal cost) method.
(2) Prepare an income statement detailing sales and costs for each product.

Transcribed Image Text:

By-Product Main Product Sales Manufacturing cost after separation$11,500 Marketing and administrative expenses 6,000 Manufacturing cost before split-off $3,500 S75,000 S6,000Total $1,100 750 $900 13,500 7,300 550 37,500