Compute the value assigned to a by-product by the reversal cost method. (Obj . 5) . In the Mixing Department of the Toronto Company,

scrap materials (a by-product) are removed, further processed, and sold. The company uses the reversal cost method (or normal net profit method) to account for the by-product. Data for April 19X9 follow.
Amount of by-product removed, 4,300 kilograms Estimated sales price of by-product after further processing, $.70 per kilogram Estimated processing cost after separation, $.12 per kilogram Estimated selling expenses, 10 percent of sales price Estimated normal profit margin, 10 percent of sales price Compute the value to be assigned to the by-product aind removed from Work in Process at the point of separation. 

LO.1