Record the value of a by-product not requiring further processing—

value credited to work in process. (Obj. 1). The manufacturing process in the Trimming Department of the Paige Company results in a by-product. The company accumulates the by-product and periodically sells it. During the month of June 19X9, a quantity of the by-product with an estimated sales value of S900 was recovered. The company treats the estimated value of the by-product as a reduction in the cost of production completed during the current month. The total cost of the 20,000 units completed during the month was S48.000 before considering the by-product.

a. Give the general journal entry to record the removal of the byproduct from factory operations and its storage in inventory.

b. Calculate the revised cost per unit of the goods transferred out of the department during the month.

LO.1