Sparta Company processes 15,000 gallons of direct materials to produce two products (Product X by - product) and Product Y (main product). Product X sells for $ 5 per gallon and Product Y , the main product sells for $ 55 per gallon . The following information is for August Production Sales Beginning Ending Inventory Inventory Product X 4,375 4,000 0 375 Product Y: 10,000 9,500 0 500 The manufacturing costs totaled $380,000 (250,000 Direct Material and 130,000 Conversion Costs ) 1. What is the gross margin of Sparta under the sales method of byproduct accounting ? 2. What are the inventory costs reported in the balance sheet for the main product and byproduct under the sales method ? Show journal entries at the time of production and at the time of sale assuming that Claude accounts for the byproduct using the sales method

Answer rating: 100% (QA)

Solution Firstly you should know by product By product is a secon... View the full answer