- Tasty Inc Is A Producer Of Potato Chips A Single Production Process At Tasty Inc Yields Potato Chips As The Main P 1 (13.51 KiB) Viewed 46 times
Requirement 1. What is the gross margin for Tasty, Inc., under
the production method and the sales method of byproduct
accounting? (Enter a "0" for any cells with a zero balance. For
the main product inventory: Calculate the proportion of inventory
first, then complete your calculation.)
- Tasty Inc Is A Producer Of Potato Chips A Single Production Process At Tasty Inc Yields Potato Chips As The Main P 2 (13.67 KiB) Viewed 46 times
Potato Chips Byproduct Production (in pounds) 48,000 8,300 Sales (in pounds) 38,400 $ 6,500 $ Selling Price per pound 20 5
1. What is the gross margin for Tasty, Inc., under the production method and the sales method of byproduct accounting? 2. 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? 3. 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.
Revenues Main product (potato chips) Byproduct (snack) Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventory Cost of goods sold Gross margin Production Sales method method $ 768,000 768,000 505,000 41,500 463,500 92,700 370,800 $ 397,200