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 $300 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below Ying 15,000 15,000 Separable processing costs-variable $ 42,000 $3,000 Separable processing costs-fixed Sales price $.6.00 Total joint costs for Marshall in the recent month are $84.200, of which $36,206 is a variable cost. Units sold Units produced Manufacturing cost per unit Total gross margin Ying Yang Yang 12,000 12,000 $ 14,000 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. $ 1,000 $ 12.50 Bit 3,000 3,000 $ $1.50 Bit
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 $300 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below Ying 15,000 15,000 Separable processing costs-variable $ 42,000 $3,000 Separable processing costs-fixed Sales price $.6.00 Total joint costs for Marshall in the recent month are $84.200, of which $36,206 is a variable cost. Units sold Units produced Manufacturing cost per unit Total gross margin Ying Yang Yang 12,000 12,000 $ 14,000 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. $ 1,000 $ 12.50 Bit 3,000 3,000 $ $1.50 Bit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $300 disposal cost for the by-
product. A summary of a recent month's activity at Marshall is shown below
Units sold
Units produced
Separable processing costs-variable
Separable processing costs-fixed
Sales price
Bit
3,000
3,000
$
$
$ 1.50
Total joint costs for Marshall in the recent month are $84,200, of which $36,206 is a variable cost.
Ying
15,000
15,000
$ 42,000
$3,000
$ 6.00
Manufacturing cost per unit
Total gross margin
Ying
Yang
12,000
12,000
$ 14,000
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.
Yang
$1,000
$12.50
Bit
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