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 $600 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 30,000 30,000 $ 84,000 $ 6,000 $ 6.00 Bit 6,000 6,000 Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price Yang 24,000 24,000 $ 26,000 $ 4,000 $ 12.50 $ - $ 1.50 Total joint costs for Marshall in the recent month are $118,400, of which $50,912 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.
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 $600 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Ying 30,000 30,000 $ 84,000 $ 6,000 $ 6.00 Bit 6,000 6,000 Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price Yang 24,000 24,000 $ 26,000 $ 4,000 $ 12.50 $ - $ 1.50 Total joint costs for Marshall in the recent month are $118,400, of which $50,912 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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...
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