QUESTION 28Cost AccountingChoose the answer from the choices GB Inc. which began operations in 2020, produces gasoline and a gasoline by-product. Thefollowing information is available pertaining to 2020 sales and production (SEE PICTUREBELOW):GB accounts for the by-product at the time of production. What are GB's 2020 cost of sales forgasoline and the by-product? *P 120,000270,00030,00015,000Total production costs to split-off pointGasoline salesBy-product salesGasoline inventory, Dec. 31, 2020Additional by-product costs:MarketingProductionP 10,00015,000Gasoline: P 105,000; By-product: P 25,000Gasoline: P 115,000; By-product: P 0Gasoline: P 108,000; By-product: P 37,000Gasoline: P 100,000; By-product: PO

Working Notes: 1. Total sales = Gasoline sales + By-product sales = P270,000 + P30,000 = P300,000…

GB Inc. which began operations in 2020, produces gasoline and a gasoline by-product. The following information is available pertaining to 2020 sales and production (SEE PICTURE BELOW): GB accounts for the by-product at the time of production. What are GB's 2020 cost of sales for gasoline and the by-product? * P 120,000 Total production costs to split-off point Gasoline sales 270,000 30,000 15,000 By-product sales Gasoline inventory, Dec. 31, 2020 Additional by-product costs: Marketing Production P 10,000 15,000 O Gasoline: P 105,000; By-product: P 25,000 O Gasoline: P 115,000; By-product: P O O Gasoline: P 108,000; By-product: P 37,000 O Gasoline: P 100,000; By-product: PO

GB Inc. which began operations in 2020, produces gasoline and a gasoline by-product. The following information is available pertaining to 2020 sales and production (SEE PICTURE BELOW): GB accounts for the by-product at the time of production. What are GB's 2020 cost of sales for gasoline and the by-product? * P 120,000 Total production costs to split-off point Gasoline sales 270,000 30,000 15,000 By-product sales Gasoline inventory, Dec. 31, 2020 Additional by-product costs: Marketing Production P 10,000 15,000 O Gasoline: P 105,000; By-product: P 25,000 O Gasoline: P 115,000; By-product: P O O Gasoline: P 108,000; By-product: P 37,000 O Gasoline: P 100,000; By-product: PO

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2RE: Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of...

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