Homework Help is Here – Start Your Trial Now!
Business
Accounting
ures a product that yields the by-product "Yum." The only costs Abel Corp. man Sociated with Yum are selling costs of P.10 for each unit sold. Abel accounts for les of Yum by deducting Yum's separable costs from Yum's sales, and then educting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. wIf Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would Increase by P 90,000 Increase by P 100,000 a. b. Increase by P 110,000 d. Be unaffected If Abel changes its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 a. b. c. Increase by P 110,000 d. Be unaffected

ures a product that yields the by-product "Yum." The only costs Abel Corp. man Sociated with Yum are selling costs of P.10 for each unit sold. Abel accounts for les of Yum by deducting Yum's separable costs from Yum's sales, and then educting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. wIf Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would Increase by P 90,000 Increase by P 100,000 a. b. Increase by P 110,000 d. Be unaffected If Abel changes its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 a. b. c. Increase by P 110,000 d. Be unaffected

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

with solution pls

Abel Corp. manufactures a product that yields the by-product "Yum." The only costs Aciated with Yum are selling costs of P.10 for each unit sold. Abel accounts for es of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. If Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would Increase by P 90,000 Increase by P 100,000 a. b. Increase by P 110,000 d. Be unaffected 5. If Abel changes its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 b. Increase by P 100,000 Increase by P 110,000 d. a. Be unaffected C.
Transcribed Image Text:Abel Corp. manufactures a product that yields the by-product "Yum." The only costs Aciated with Yum are selling costs of P.10 for each unit sold. Abel accounts for es of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. If Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would Increase by P 90,000 Increase by P 100,000 a. b. Increase by P 110,000 d. Be unaffected 5. If Abel changes its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 b. Increase by P 100,000 Increase by P 110,000 d. a. Be unaffected C.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Database design
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS