The Marshall Company has a joint production process that produces two joint products and a by-product. The joint p and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value met products are processed beyond the split-off point, incurring separable processing costs. There is a $700 disposal co product. A summary of a recent month's activity at Marshall is shown below:
The Marshall Company has a joint production process that produces two joint products and a by-product. The joint p and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value met products are processed beyond the split-off point, incurring separable processing costs. There is a $700 disposal co product. A summary of a recent month's activity at Marshall is shown below:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $700 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
Ying
35,000
35,000
$ 98,000
$ 7,000
$ 5,000
S-
$6.00
$ 12.50
$ 1.50
Total joint costs for Marshall in the recent month are $129,800, of which $55,814 is a variable cost.
Manufacturing cost per unit
Total gross margin
Yang
28,000
28,000
$ 30,000
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.
Ying
Yang
Bit
7,000
7,000
S-
Bit
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