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: Units sold. Units produced Ying 75,000 75,000 Separable processing costs-variable $ 210,000 $ 15,000 Separable processing costs-fixed Sales price $ 6.00 Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost. Manufacturing cost per unit Total gross margin Yang 60,000 60,000 $ 65,000 Ying 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. Yang $ 10,000 $12.50 Bit 15,000 15,000 $- $- $1.50 Bit
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: Units sold. Units produced Ying 75,000 75,000 Separable processing costs-variable $ 210,000 $ 15,000 Separable processing costs-fixed Sales price $ 6.00 Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost. Manufacturing cost per unit Total gross margin Yang 60,000 60,000 $ 65,000 Ying 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. Yang $ 10,000 $12.50 Bit 15,000 15,000 $- $- $1.50 Bit
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter25: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 4CMA: Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint...
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