Moo Man is a producer of milk and byproducts. A single production process at Moo Man 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 $345,000. 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 Moo Man under the production method and the sales method of byproduct accounting? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Revenues Main product: Milk Byproduct: Ghee Total revenues Cost of goods sold: Net manufacturing costs Cost of goods sold Gross margin Sales Method Inventoriable costs (end of period) Main product: Milk Byproduct: Ghee Co Requirement 2. What are the inventory costs reported in the balance sheet on October 31, 2020, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Sales Method

Moo Man is a producer of milk and byproducts. A single production process at Moo Man 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 $345,000. 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 Moo Man under the production method and the sales method of byproduct accounting? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Revenues Main product: Milk Byproduct: Ghee Total revenues Cost of goods sold: Net manufacturing costs Cost of goods sold Gross margin Sales Method Inventoriable costs (end of period) Main product: Milk Byproduct: Ghee Co Requirement 2. What are the inventory costs reported in the balance sheet on October 31, 2020, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Sales Method

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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es Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter. It annually produces and sells 21,125 tons of its granular. Because of this year's mild winter, projected demand for its product is only 16,900 tons. Based on projected production and sales of 16,900 tons, the company estimates the following income using absorption costing. Sales (16,900 tons at $80 per ton) $ 1,352,000 Cost of goods sold (16,900 tons at $60 per 1,014,000 ton) Gross profit Selling and administrative expenses Income 338,000 338,000 $ 0 Its product cost per ton follows and consists mainly of fixed overhead because its automated production process uses expensive equipment. Direct materials Direct labor Variable overhead Fixed overhead ($676,000/16,900 tons) $ 13 per ton $ 4 per ton $ 3 per ton $ 40 per ton Selling and administrative expenses consist of variable selling and administrative expenses of $6 per ton and fixed selling and administrative expenses of $236,600…
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