Question 7.1 DNA Ltd. produces two main products, A and B; and, a byproduct, C. There were no beginning inventories. During April, it incurred $275,000 of joint costs, which are allocated to main products using the physical output method. Additional information follows: Product Units Produced Units Sold Unit Sales Price A 12,000 9,600 $22 B 18,000 15,300 38 C 6,000 5,200 3 Required: Assuming DNA recognizes byproduct revenue at the time of sale, what is the total value of ending inventory?
Question 7.1 DNA Ltd. produces two main products, A and B; and, a byproduct, C. There were no beginning inventories. During April, it incurred $275,000 of joint costs, which are allocated to main products using the physical output method. Additional information follows: Product Units Produced Units Sold Unit Sales Price A 12,000 9,600 $22 B 18,000 15,300 38 C 6,000 5,200 3 Required: Assuming DNA recognizes byproduct revenue at the time of sale, what is the total value of ending inventory?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 7.1
DNA Ltd. produces two main products, A and B; and, a byproduct, C. There were no beginning inventories. During April, it incurred $275,000 of joint costs, which are allocated to main products using the physical output method. Additional information follows:
|
Product |
Units Produced |
Units Sold |
Unit Sales Price |
|
A |
12,000 |
9,600 |
$22 |
|
B |
18,000 |
15,300 |
38 |
|
C |
6,000 |
5,200 |
3 |
Required:
- Assuming DNA recognizes byproduct revenue at the time of sale, what is the total value of ending inventory?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education