Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milkas the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fullyprocessed by the splitoff point, and there are no separable costs. For the month of October 2020, the cost ofoperations is $335,000.Production and sales data are as follows: Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milk as the main product, as well as ghoo, a byproduct of milk production, that can be sold. Both products are fully processed by the splitoff point, and there are no saparable costs For the month of October 2020, the cast of operations is $335,000 Production and salas data are as follows: (Click the icon to view the production and sales data) Thane wars no beginning inventarias on October 1, 2020. Read the aumenta Requirement 1. What is the gross margin for Cider Hill Farm under the production method and the sales method of byproduct accounting? (Complete all input fields. Enter a 0 for any zero balances) Production Method Sales Method Revenues Main product Mak Byproduct: Ghee Total revenues Cost of goods sold Net manufacturing costs Cost of goods sold Gross margin 3 Data table Milk Ghee, byproduct Production (in gallons) 530,000 13.000 Print Sales (in gallons) Selling Price per Gallon 2.40 619,400 S 12,400 S Done 1.40
Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milkas the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fullyprocessed by the splitoff point, and there are no separable costs. For the month of October 2020, the cost ofoperations is $335,000.Production and sales data are as follows: Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milk as the main product, as well as ghoo, a byproduct of milk production, that can be sold. Both products are fully processed by the splitoff point, and there are no saparable costs For the month of October 2020, the cast of operations is $335,000 Production and salas data are as follows: (Click the icon to view the production and sales data) Thane wars no beginning inventarias on October 1, 2020. Read the aumenta Requirement 1. What is the gross margin for Cider Hill Farm under the production method and the sales method of byproduct accounting? (Complete all input fields. Enter a 0 for any zero balances) Production Method Sales Method Revenues Main product Mak Byproduct: Ghee Total revenues Cost of goods sold Net manufacturing costs Cost of goods sold Gross margin 3 Data table Milk Ghee, byproduct Production (in gallons) 530,000 13.000 Print Sales (in gallons) Selling Price per Gallon 2.40 619,400 S 12,400 S Done 1.40
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields
milkas the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products
are fullyprocessed by the splitoff point, and there are no separable costs. For the month of October 2020,
the cost ofoperations is $335,000.Production and sales data are as follows:
Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milk as the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fully processed by the splitoff point, and there are no
separable costs. For the month of October 2020, the cost of operations is $335,000. Production and sales data are as follows:
(Click the icon to view the production and sales data.)
There were no beginning inventories on October 1, 2020.
Read the requirements
Requirement 1. What is the gross margin for Cider Hill Farm under the production method and the sales method of byproduct accounting? (Complete all input fields. Enter a 0 for any zero balances.)
Production
Method
Sales Method
- X
Revenues
Main product: Milk
Byproduct: Ghee
Total revenues
Cost of goods sold
Net manufacturing costs
Cost of goods sold
Gross margin
3
Data table
Milk
Ghee, byproduct
Production
(in gallons)
530,000
13,000
Print
Sales (In
gallons)
Selling Price
per Gallon
619,400 $
12,400 S
Done
2.40
1.40
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