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Print Canyon Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold for industrial use. Both products are sold at th point. Canyon Resources started November 2017 with no inventories and spent $590,000 on operations that month. Production and sales information for Novem given below: ¹(Click the icon to view the information for November.) What is the gross margin for Canyon Resources, Inc., under the production method and the sales method of accounting for byproducts? Begin by calculating the gross margin under the production method and then the sales method. (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation. Enter all numbers in thousands of dollars.) Revenues Main product Byproduct Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventory Cost of goods sold Gross margin 1: More Info Production method Copper Molybdenum Production (in tons) 36,000 4,500 Sales (in tons) 26,640 3,200 Selling Price per ton 33 11 $ $

Print Canyon Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold for industrial use. Both products are sold at th point. Canyon Resources started November 2017 with no inventories and spent $590,000 on operations that month. Production and sales information for Novem given below: ¹(Click the icon to view the information for November.) What is the gross margin for Canyon Resources, Inc., under the production method and the sales method of accounting for byproducts? Begin by calculating the gross margin under the production method and then the sales method. (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation. Enter all numbers in thousands of dollars.) Revenues Main product Byproduct Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventory Cost of goods sold Gross margin 1: More Info Production method Copper Molybdenum Production (in tons) 36,000 4,500 Sales (in tons) 26,640 3,200 Selling Price per ton 33 11 $ $

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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1. Canyon Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold for industrial use. Both products are sold at th Print point. Canyon Resources started November 2017 with no inventories and spent $590,000 on operations that month. Production and sales information for Novem given below: ¹(Click the icon to view the information for November.) What i the gross margin for Canyon Resources, Inc., under the production method and the sales method of accounting for byproducts? Begin by calculating the gross margin under the production method and then the sales method. (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation. Enter all numbers in thousands of dollars.) Revenues Main product Byproduct Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventory Cost of goods sold Gross margin 1: More Info Production method Copper Molybdenum Production (in tons) 36,000 4,500 Sales (in tons) 26,640 3,200 $ $ Selling Price per ton 33 11
Transcribed Image Text:1. Canyon Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold for industrial use. Both products are sold at th Print point. Canyon Resources started November 2017 with no inventories and spent $590,000 on operations that month. Production and sales information for Novem given below: ¹(Click the icon to view the information for November.) What i the gross margin for Canyon Resources, Inc., under the production method and the sales method of accounting for byproducts? Begin by calculating the gross margin under the production method and then the sales method. (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation. Enter all numbers in thousands of dollars.) Revenues Main product Byproduct Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventory Cost of goods sold Gross margin 1: More Info Production method Copper Molybdenum Production (in tons) 36,000 4,500 Sales (in tons) 26,640 3,200 $ $ Selling Price per ton 33 11
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