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Lisa decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the original bee colony, and her own time and equipment. This past year, she harvested 150 pounds of honey and 50 pounds of honeycomb for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz. jar. The honeycomb can be sold as well, for $3 per pound.

Lisa decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the original bee colony, and her own time and equipment. This past year, she harvested 150 pounds of honey and 50 pounds of honeycomb for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz. jar. The honeycomb can be sold as well, for $3 per pound.

FINANCIAL ACCOUNTING
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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If Lisa sells all of the honeycomb and 100 pounds of the honey that she harvested, how much gross margin will she recognize under (1) the sales value at split-off method and (2) the physical quantities method? (1) The sales value at split-off method (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45.25 or parentheses e.g. (45.25).) Gross margin $ Gross margin Honey $ -577.78 Honey (2) The physical quantities method (Round answers to O decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ -300 Honeycomb $ 72.28 Honeycomb -350
Transcribed Image Text:If Lisa sells all of the honeycomb and 100 pounds of the honey that she harvested, how much gross margin will she recognize under (1) the sales value at split-off method and (2) the physical quantities method? (1) The sales value at split-off method (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45.25 or parentheses e.g. (45.25).) Gross margin $ Gross margin Honey $ -577.78 Honey (2) The physical quantities method (Round answers to O decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ -300 Honeycomb $ 72.28 Honeycomb -350
Lisa decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the original bee colony, and her own time and equipment. This past year, she harvested 150 pounds of honey and 50 pounds of honeycomb for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz. jar. The honeycomb can be sold as well, for $3 per pound.
Transcribed Image Text:Lisa decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the original bee colony, and her own time and equipment. This past year, she harvested 150 pounds of honey and 50 pounds of honeycomb for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz. jar. The honeycomb can be sold as well, for $3 per pound.
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