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.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![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 $1,500 disposal cost for the by-
product. A summary of a recent month's activity at Marshall is shown below:
Yang
60,000
60,000
Separable processing
costs-variable
$ 65,000
Separable processing costs-fixed
$ 10,000
Sales price
$ 12.50
Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost.
Units sold
Units produced
Ying
75,000
75,000
$ 210,000
Manufacturing cost per unit.
Total gross margin
Ying
$ 15,000
$ 6.00
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.
Bit
15,000
15,000
Yang
Bit
$.
$
$ 1.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa696c7c6-0c67-4acd-b8a6-32f328ad3985%2Fc8f69e4c-f72c-407d-aaaf-60cc54ee1681%2Fgalmhys_processed.jpeg&w=3840&q=75)
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