Problem 7-48 (Algo) Joint Products; By-Products (Appendix) [LO 7-6, 7-7] The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $300 disposal cost for the by-product. A summary of a recent month’s activity at Marshall is shown. Total joint costs for Marshall in the recent month are $84,200, of which $36,206 is a variable cost. Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total gross margin for each product.
Problem 7-48 (Algo) Joint Products; By-Products (Appendix) [LO 7-6, 7-7] The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $300 disposal cost for the by-product. A summary of a recent month’s activity at Marshall is shown. Total joint costs for Marshall in the recent month are $84,200, of which $36,206 is a variable cost. Required: 1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimal places.) 2. Calculate the total gross margin for each product.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 7-48 (Algo) Joint Products; By-Products (Appendix) [LO 7-6, 7-7]
The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable
Total joint costs for Marshall in the recent month are $84,200, of which $36,206 is a variable cost.
Required:
1. Calculate the
2. Calculate the total gross margin for each product.
Transcribed Image Text:Units sold
Units produced
Separable processing costs-variable
Separable processing costs-fixed
Sales price
Ying
15,000
15,000
$ 42,000
$ 3,000
$ 6.00
Yang
12,000
12,000
$ 14,000
$ 1,000
$12.50
Bit
3,000
3,000
$
$ 1.50
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