Freshwater, Inc. produces drinking water from saltwater through a desalination process. Salt, a byproduct of the process, can be sold. Both products are fully processed at the split-off point. There are no separable costs. For September, the cost to desalinate 326,000 gallons of seawater was $97,500. Production and sales data are as follows: Measure Production Sales Sales price Drinking water Gallons 325,000 300,000 $0.75 225,000 Salt Pounds 10,000 6,500 0.50 3,250 There were no beginning inventories at 9/1.

What is the gross profit for September under the Net Realizable Value method?

What is the gross profit for September under the Manufacturing Cost Reduction method?

What is the total inventory value at 9/30 under the Net Realizable Value method?

What is the total inventory value at 9/30 under the Manufacturing Cost Reduction method?

Answer rating: 100% (QA)

1 Sales Drinking Water 300000 075 225000 No of Gal... View the full answer