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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 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

FINANCIAL ACCOUNTING
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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ed es 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
Transcribed Image Text:ed es 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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