The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Yingand Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two jointproducts are processed beyond the split-off point, incurring separable processing costs. There is a $1,500 disposal cost for the by-product. A summary of a recent month's activity at Marshall is shown below:Ying75,00075,000$ 210,000$ 15,000$ 6.00Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost.Units soldUnits producedSeparable processing costs-variableSeparable processing costs-fixedSales priceManufacturing cost per unitTotal gross marginYang60,00060,000$ 65,000$ 10,000$ 12.50Required:1. Calculate the manufacturing cost per unit for each of the three products. (Round manufacturing cost per unit answers to 2 decimalplaces.)2. Calculate the total gross margin for each product.YingYangBit15,00015,000$ -$ -$ 1.50Bit

Manufacturing Cost Per Unit: The manufacturing cost per unit is calculated by adding the separate…

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 $1,500 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Units sold. Units produced Ying 75,000 75,000 Separable processing costs-variable $ 210,000 $ 15,000 Separable processing costs-fixed Sales price $ 6.00 Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost. Manufacturing cost per unit Total gross margin Yang 60,000 60,000 $ 65,000 Ying 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 $ 10,000 $12.50 Bit 15,000 15,000 $- $- $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 $1,500 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Units sold. Units produced Ying 75,000 75,000 Separable processing costs-variable $ 210,000 $ 15,000 Separable processing costs-fixed Sales price $ 6.00 Total joint costs for Marshall in the recent month are $211,000, of which $90,730 is a variable cost. Manufacturing cost per unit Total gross margin Yang 60,000 60,000 $ 65,000 Ying 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 $ 10,000 $12.50 Bit 15,000 15,000 $- $- $1.50 Bit

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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