Torid Company processes 18,800 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $9 per gallon and Product Y, the main product, sells for $170 per gallon. The following information is for December: Product X: Product Y: Production 6,175 10,475 Sales 6,000 10,485 Beginning Inventory 0 50 Ending Inventory 175 40 The manufacturing costs totaled $27,000. How much is the ending inventory for the byproduct if byproducts are recognized in the general ledger at the point of sale?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Torid Company processes 18,800 gallons of direct materials to produce two products, Product X and
Product Y. Product X sells for $9 per gallon and Product Y, the main product, sells for $170 per gallon. The
following information is for December:
Product X:
Product Y:
Production
6,175
10,475
Sales
6,000
10,485
Beginning
Inventory
0
50
Ending
Inventory
175
40
The manufacturing costs totaled $27,000.
How much is the ending inventory for the byproduct if byproducts are recognized in the general ledger at
the point of sale?
Transcribed Image Text:Torid Company processes 18,800 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $9 per gallon and Product Y, the main product, sells for $170 per gallon. The following information is for December: Product X: Product Y: Production 6,175 10,475 Sales 6,000 10,485 Beginning Inventory 0 50 Ending Inventory 175 40 The manufacturing costs totaled $27,000. How much is the ending inventory for the byproduct if byproducts are recognized in the general ledger at the point of sale?
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