(Required) Q. Athens Company processes 15,000 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $8 per gallon and Product Y, the main product, sells for $100 per gallon. The following information is for August: Ending Inventory Production Product X: 4,375 Product Y: 10,000 Sales 4,000 9,625 Beginning Inventory 0 125 375 500 The manufacturing costs totaled $30,000. a. What is the byproduct's net revenue reduction if byproducts are recognized in the general ledger during production and their revenues are a reduction of cost? b. How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?

(Required) Q. Athens Company processes 15,000 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $8 per gallon and Product Y, the main product, sells for $100 per gallon. The following information is for August: Ending Inventory Production Product X: 4,375 Product Y: 10,000 Sales 4,000 9,625 Beginning Inventory 0 125 375 500 The manufacturing costs totaled $30,000. a. What is the byproduct's net revenue reduction if byproducts are recognized in the general ledger during production and their revenues are a reduction of cost? b. How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 22E: The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is...

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