P12-4 Spain produces product AB from a process that also yields the by-product C. Spainprovided the following information for the most recent fiscal year:EndinginventoryUnitsUnits soldproduced3,0001,0004,000600AB2,4006004003,0001,000P60Unit selling price of ABUnit selling price of C (net of selling costs)Total manufacturing costsP10Direct materialsP20,000Direct labor30,000P100,000P30,000Overhead50,000Selling and administrative expensesRequired: Compute the gross margin and net income of Spain if:: a.net revenue from by-product is treated as additional revenueb.net revenue from by-product is treated as deduction from cost of goods soldC.net revenue from by-product is treated as other incomed.. net revenue from by-product is treated as a deduction from total manufacturingcost ·е.by-product is recognized at net realizable value

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Required: Compute the gross margin and net income of Spain if: a. net revenue from by-product is treated as additional revenue b. net revenue from by-product is treated as deduction from cost of goods sold C. net revenue from by-product is treated as other income d.. net revenue from by-product is treated as a deduction from total manufacturing cost e. by-product is recognized at net realizable value

Required: Compute the gross margin and net income of Spain if: a. net revenue from by-product is treated as additional revenue b. net revenue from by-product is treated as deduction from cost of goods sold C. net revenue from by-product is treated as other income d.. net revenue from by-product is treated as a deduction from total manufacturing cost e. by-product is recognized at net realizable value

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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