Accounting for a main product and a by-product. (Cheatham and Green, adapted) (30 minutes) Claude Deux-Bussy is
Question:
Accounting for a main product and a by-product. (Cheatham and Green, adapted) (30 minutes) Claude Deux-Bussy is the owner and operator of Boissons Barbe-Bleue, SARL, a bulk soft-drink producer. A single production process yields two bulk soft drinks, Pelléas (the main product) and Mélisande (the by-product). Both products are fully processed at the split-off point and there are no separable costs.
Summary data for September 2000 are as follows: hyu4
REQUIRED 1. What is the gross margin for Boissons Barbe-Bleue under methods A, B, C and D of by-product accounting described on p. 186 of this chapter?
2. What are the stock amounts reported in the balance sheet on 30 September 2000 for Pelléas and Mélisande under each of the four methods of by-product accounting cited in requirement 1?
3. Which method would you recommend Boissons Barbe-Bleue use? Explain.
Step by Step Answer:
Management And Cost Accounting
ISBN: 9780130805478
1st Edition
Authors: Charles T. Horngren, Alnoor Bhimani, Srikant M. Datar, George Foster