Tamarisk Group provides many of the laminated products that teachers use in their classrooms. Tamarisk management consie company to also be quite green, as it captures the small cut-out pieces and sells them to an organization that uses them in its production of plastic tableware. To date, Tamarisk has treated these cut-outs as a by-product, since it receives a small value fo items upon sale. The quantities and values of both the main laminated products and the small cut-outs, created in a joint proces costs $1.900, are as follows. Both products are sold at the split-off point and not processed further. All sales are on account. Main laminated products Small cut-outs Units Produced Sales Value per Unit $2 2.100 500 0.50
Tamarisk Group provides many of the laminated products that teachers use in their classrooms. Tamarisk management consie company to also be quite green, as it captures the small cut-out pieces and sells them to an organization that uses them in its production of plastic tableware. To date, Tamarisk has treated these cut-outs as a by-product, since it receives a small value fo items upon sale. The quantities and values of both the main laminated products and the small cut-outs, created in a joint proces costs $1.900, are as follows. Both products are sold at the split-off point and not processed further. All sales are on account. Main laminated products Small cut-outs Units Produced Sales Value per Unit $2 2.100 500 0.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Progress
Tamarisk Group provides many of the laminated products that teachers use in their classrooms. Tamarisk management considers t
company to also be quite green, as it captures the small cut-out pieces and sells them to an organization that uses them in its
production of plastic tableware. To date, Tamarisk has treated these cut-outs as a by-product, since it receives a small value for the
items upon sale. The quantities and values of both the main laminated products and the small cut-outs, created in a joint process th
costs $1,900, are as follows. Both products are sold at the split-off point and not processed further. All sales are on account.
Main laminated products
Small cut-outs
Units Produced Sales Value per Unit
$2
2.100
500
0.50
Transcribed Image Text:If 10% of the production for both products had been unsold as of year-end, how much inventory cost would remain on the balance
sheet for each product under (1) the sales method and (2) the production method? (Do not leave any answer field blank. Enter o for
amounts.)
(1) The sales method
Inventory cost
(2) The production method
Inventory cost
FG Inventory-Main
$
179
FG Inventory-Main
153
FG Inventory-By-Product
11
FG Inventory-By-Product
S
37
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Step 1: Define joint cost:
VIEWStep 2: Working note 1- Calculation of relative sales values:
VIEWStep 3: Working note 2- Calculation of relative production units-
VIEWStep 4: Requirement 1- calculation of ending inventory cost based on sales method
VIEWStep 5: Requirement 2- calculation of ending inventory cost based on production method:
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