ABC Corp. manufactures a product that yields the by-product, "Y". The only cost associated with Ya re selling costs of P.10 for each unit sold. ABC accounts for sales of Y by deducting Ys separable costs from Y's sales, and then deducting this net amountfrom the major product's cost of goods sold. Ys sales were 100,000 units at P1 each. If ABC changes its method of accoun ting for Y's sales by showing the net amountas additional sales revenue, then ABC's gross margin would: Increase by P90,000 Increase by 100,000 Increase by 110,000 Be una ffected

ABC Corp. manufactures a product that yields the by-product, "Y". The only cost associated with Ya re selling costs of P.10 for each unit sold. ABC accounts for sales of Y by deducting Ys separable costs from Y's sales, and then deducting this net amountfrom the major product's cost of goods sold. Ys sales were 100,000 units at P1 each. If ABC changes its method of accoun ting for Y's sales by showing the net amountas additional sales revenue, then ABC's gross margin would: Increase by P90,000 Increase by 100,000 Increase by 110,000 Be una ffected

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6. Show your solution in good accounting form
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