i need help please. thanks. ### Preparation of Income Statements for Zeena Foods**Context**:Potato skins, a by-product from the production of potato chips and hash browns at Zeena Foods, are sold to restaurants. Zeena Foods produced and sold 108,000 pounds of potato skins for $16,200 in May. The processing and disposal costs associated are $0.06 per pound. The joint production cost for the chips and hash browns totaled $65,600, with additional separate production costs of $38,400. In May, 90% of total production sold amounted to $255,200 in sales, and non-factory operating expenses were $38,280.#### a. Income Statement with By-products as Other Revenue**Zeena Foods Income Statement for Month Ended May 31**- **Sales revenue (joint products):** - **Cost of goods sold:** - Joint cost: - Separate costs: - By-products: - **Gross profit:** - **Non-factory expenses:** - **Income from operations:** - **Other revenues (by-product sales):** - **Income before taxes:** #### b. Income Statement with By-products as Other Income**Zeena Foods Income Statement for Month Ended May 31**- **Sales revenue (joint products):** - **Cost of goods sold:** - **Gross profit:** - **Non-factory expenses:** - **Income from operations:** - **Other income (by-product sales):** - **Income before taxes:** #### c. Income Statement with Net Realizable Value Subtracted from Joint Cost**Zeena Foods Income Statement for Month Ended May 31**- **Sales revenue (joint products):** - **Cost of goods sold:**- **Gross profit:** - **Non-factory expenses:** - **Income before taxes:** **Note**: - Do not use negative signs for your answers.- Treat by-products either as other revenue, other income, or subtract their net realizable value from joint costs.Each of the statements requires allocating costs and revenues as described to reflect different accounting methods for by-products.

Joint cost: It is the cost of producing two products or services together in a single process.…

Potato skins are generated as a by-product in making potato chips and frozen hash browns at Zeena Foods. The skins are sold to restaurants for use in appetizers. Processing and disposal costs associated with by-product sales are $0.06 per pound of potato skins. During May, Zeena Foods produced and sold 108,000 pounds of potato skins for $16,200. In addition, the joint cost for producing potato chips and hash browns was $65,600; separate costs of production were $38,400. In May, 90 percent of all joint production was sold for $255,200. Non-factory operating expenses for May were $38,280. a. Prepare an income statement for Zeena Foods assuming that by-product sales are shown as Other Revenue and the processing and disposal costs for the by- product are shown as additional cost of goods sold of the joint products. Note: Do not use a negative sign with your answers. Zeena Foods Income Statement For Month Ended May 31 Sales revenue (joint products) Cost of goods sold: Joint cost 24 Separate costs By-products Gross profit Non-factory expenses Income from operations 24 Other revenues (by-product sales) Income before taxes b. Prepare an income statement for Zeena Foods assuming that the net realizable value of the by-product is shown as Other Income. Note: Do not use a negative sign with your answers. Zeena Foods Income Statement For Month Ended May 31 Sales revenue (joint products) 24 Cost of goods sold Gross profit Non-factory expenses Income from operations $ Other income (by-product sales) Income before taxes $ c. Prepare an income statement for Zeena Foods assuming that the net realizable value of the by-product is subtracted from the joint cost of the main products. Note: Do not use a negative sign with your answers. Zeena Foods Income Statement For Month Ended May 31 Sales revenue Cost of goods sold Gross profit Non-factory expenses Income before taxes $4

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q