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 $1,200 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 60,000 60,000 $ 168,000 $ 12,000 $ 6.00 Bit Yang 48,000 48,000 $ 50,000 $ 10,000 $ 12.50 12,000 12,000 Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price $ $ $ 1.50 Total joint costs for Marshall in the recent month are $176,800, of which $76,024 is a variable cost. 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. X Answer is complete but not entirely correct. Ying Yang Bit Manufacturing cost per unit $ 3.67 O $ 3.75 O $ 1.42 X Total gross margin 159,800 X $ 420,150 X $ 1,000 x
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 $1,200 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 60,000 60,000 $ 168,000 $ 12,000 $ 6.00 Bit Yang 48,000 48,000 $ 50,000 $ 10,000 $ 12.50 12,000 12,000 Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price $ $ $ 1.50 Total joint costs for Marshall in the recent month are $176,800, of which $76,024 is a variable cost. 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. X Answer is complete but not entirely correct. Ying Yang Bit Manufacturing cost per unit $ 3.67 O $ 3.75 O $ 1.42 X Total gross margin 159,800 X $ 420,150 X $ 1,000 x
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 $1,200 disposal cost for the by-
product. A summary of a recent month's activity at Marshall is shown below:
Ying
60,000
60,000
$ 168,000
$ 12,000
$ 6.00
Bit
Yang
48,000
48,000
$ 50,000
$ 10,000
$ 12.50
Units sold
12,000
12,000
$
Units produced
Separable processing costs-variable
Separable processing costs-fixed
Sales price
$ 1.50
Total joint costs for Marshall in the recent month are $176,800, of which $76,024 is a variable cost.
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.
X Answer is complete but not entirely correct.
Ying
Yang
Bit
Manufacturing cost per unit
$
3.67
$
3.75
1.42 X
Total gross margin
$
159,800 X $ 420,150 X $
1,000 X
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