Anson Corp. manufactures a product that yields the by-product, "Yum". The only costs associated with Yum are selling costs of PO.10 for each unit sold. Anson accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1 each. If Anson changes its method of accounting for Yum's sales by showing the net revenue as other income, then net income would
Anson Corp. manufactures a product that yields the by-product, "Yum". The only costs associated with Yum are selling costs of PO.10 for each unit sold. Anson accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1 each. If Anson changes its method of accounting for Yum's sales by showing the net revenue as other income, then net income would
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Anson Corp. manufactures a product that yields the by-product, "Yum". The
only costs associated with Yum are selling costs of PO.10 for each unit sold.
Anson accounts for sales of Yum by deducting Yum's separable costs from
Yum's sales, and then deducting this net amount from the major product's
cost of goods sold. Yum's sales were 100,000 units at P1 each. If Anson changes its method of accounting for Yum's sales by showing the
net revenue as other income, then net income would
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