Question

< Back This window shows your responses and what was marked correct and incorrect from your previous attempt. Problem 7-48 Joint Products; By-Products (Appendix) [LO 7-6, 7-7) 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 $2,300 disposal cost for the by-product. A summary of a recent month's activity at Marshall is shown below: 0/5 points awarded Scored Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price Ying 115,000 115,000 $322,000 $ 23,000 $ 6.00 Yang 92,000 92,000 $98,900 $ 17,000 $ 12.50 Bit 23,000 23,000 $ - $ - $ 1.50 Total joint costs for Marshall in the recent month are $302.200, of which $129,946 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. Manufacturing cost per unit Total gross margin Ying 3.93 $ 238,014 Ⓡ$ Yang 3.18 856,984 $ $ Blt 0.75 17,302 $

Answer 1

	Ying	Yan	Bit		PU Cost:	Ying	Yan	Bit
Units:	115,000	92,000	23,000		Sales Price	6.00	12.00	1.50
Separable Processing Cost-Variable	322,000	98,000			Separable Processing Cost-Variable	2.80	1.07	-
Separable Processing Cost-Fixed	23,000	17,000			Separable Processing Cost-Fixed	0.20	0.18	-
Disposal Cost			2,300		Allocated Joint Cost	0.68	2.44
					Disposal Cost	-	-	0.10
					Total Manufacturing Cost	3.68	3.69	0.10
					GP PU	2.32	8.31	1.40
					Total Gross Margin	266,845	764,955	32,200
					Workings:
					Total:	Ying	Yan	Total
					Sales Price	690,000	1,104,000	1,794,000
					Less: Processing Cost
					Separable Processing Cost-Variable	322,000	98,000	420,000
					Separable Processing Cost-Fixed	23,000	17,000	40,000
					Net Relization Value	345,000	989,000	1,334,000
					Joint Cost	302,200
					Net Relization Value	1,334,000
					Allocation:	Ying	Yan
					Allocation of Joint Cost	78,155.17	224,044.83
					PU Cost	0.68	2.44