Business, 21.05.2020 18:57 hany90

Accounting for a main product and a byproduct. (Cheatham and Green, adapted) Crispy, Inc., is a producer of potato chips. A single production process at Crispy, Inc., yields potato chips as the main product, as well as a byproduct that can be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs.

For September 2017, the cost of operations is $520,000. Production and sales data are as follows:

Production (lbs) Sales (lbs) Sell price per lb

Potato Chips 46,000 34,960 $26

Byproducts 8200 5000 $5

There were no beginning inventories on September 1, 2017.

What is the gross margin for Crispy, Inc., under the production method and the sales method of byproduct accounting?
What are the inventory costs reported in the balance sheet on September 30, 2017, for the main product and byproduct under the two methods of byproduct accounting in requirement 1?
Prepare the journal entries to record the byproduct activities under (a) the production method and (b) the sales method. Briefly discuss the effects on the financial statements.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 02:40

Aquatic marine stores company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. aquatic uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 3 pounds per unit; $ 6 per pound direct labor: 4 hours per unit; $ 19 per hour during the first quarter, aquatic produced 5 comma 000 units of this product. actual direct materials and direct labor costs were $ 65 comma 000 and $ 330 comma 000, respectively. for the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5 comma 000 units.

Answers: 2

Answer

Business, 22.06.2019 23:50

The sarbanes-oxley act was passed to question 6 options: prevent fraud at public companies. replace all of the old accounting procedures with new ones. improve the accuracy of the company's financial reporting. both a and c

Answers: 3

Answer

Business, 23.06.2019 01:10

Hillside issues $4,000,000 of 6%, 15-year bonds dated january 1, 2016, that pay interest semiannually on june 30 and december 31. the bonds are issued at a price of $4,895,980. required: 1. prepare the january 1, 2016, journal entry to record the bonds’ issuance

Answers: 3

Answer

Business, 23.06.2019 19:30

Match the types of agreements to their descriptions. will trust living will prenuptial agreement provides protection for individual estate plans and keeps family property in the family provides for beneficiaries in the event of a death holds a decease person's assets on behalf of beneficiary has no legal power after a person dies

Answers: 1

Answer

You know the right answer?

Accounting for a main product and a byproduct. (Cheatham and Green, adapted) Crispy, Inc., is a prod...

Questions