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 

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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

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Production Method Sales Method Revenues Man product 669240 6... View the full answer