Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total gross margin for each product.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 7-48 (Algo) Joint Products; By-Products (Appendix) [LO 7-6, 7-7]
The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying
and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint
products are processed beyond the split-off point, incurring separable processing costs. There is a $1,500 disposal cost for the by-
product. A summary of a recent month's activity at Marshall is shown below:
Yang
60,000
60,000
Separable processing
costs-variable
$ 65,000
Separable processing costs-fixed
$ 10,000
Sales price
$ 12.50
Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost.
Units sold
Units produced
Ying
75,000
75,000
$ 210,000
Manufacturing cost per unit.
Total gross margin
Ying
$ 15,000
$ 6.00
Required:
1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal
places.)
2. Calculate the total gross margin for each product.
Bit
15,000
15,000
Yang
Bit
$.
$
$ 1.50
Transcribed Image Text:Problem 7-48 (Algo) Joint Products; By-Products (Appendix) [LO 7-6, 7-7] The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,500 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Yang 60,000 60,000 Separable processing costs-variable $ 65,000 Separable processing costs-fixed $ 10,000 Sales price $ 12.50 Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost. Units sold Units produced Ying 75,000 75,000 $ 210,000 Manufacturing cost per unit. Total gross margin Ying $ 15,000 $ 6.00 Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total gross margin for each product. Bit 15,000 15,000 Yang Bit $. $ $ 1.50
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