Nhat is the value assigned to the by- product and removed from the work in process at the point of separation? In department two of Maysobra company, a by- product is removed. processed and then sold. The company uses the reversal cost method to account for the by- product. Data for the by-product follows: Units Sales price Further processing cost Selling and Admin Expenses Normal Profit The material is further 6,000 kgs P3/kg PO.80 20% of sales 10% of sales What is the value assigned to the by-product and removed from the work in process at the point of separation? O P7,800 O P8,800 O P9,500
Nhat is the value assigned to the by- product and removed from the work in process at the point of separation? In department two of Maysobra company, a by- product is removed. processed and then sold. The company uses the reversal cost method to account for the by- product. Data for the by-product follows: Units Sales price Further processing cost Selling and Admin Expenses Normal Profit The material is further 6,000 kgs P3/kg PO.80 20% of sales 10% of sales What is the value assigned to the by-product and removed from the work in process at the point of separation? O P7,800 O P8,800 O P9,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Please answer in good accounting form. Thank you! <3
Transcribed Image Text:What is the value assigned to the by-
product and removed from the work in
process at the point of separation?
In department two of Maysobra company, a by-
product is removed.
processed and then sold. The company uses the
reversal cost method to account for the by-
product. Data for the by-product follows:
The material is further
6,000 kgs
P3/kg
PO.80
Units
Sales price
Further processing cost
Selling and Admin Expenses 20% of sales
Normal Profit
10% of sales
What is the value assigned to the by-product and
removed from the work in process at the point of
separation?
O P7,800
P8,800
O P9,500
P7,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education