BELOW ARE SOME NOTES THAT MAY HELP FOR THIS COSTING QUESTION

Problem 7-48 Joint Products; By-Products (Appendix) [LO 7-6, 7-7] 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 $1,300 disposal cost for the by- product. A summary of a recent month's activity at Marshall is shown below: Units sold Units produced Separable processing costs-variable Separable processing costs-fixed Sales price Ying 65,000 65,000 $182,000 $ 13,000 $ 6.00 Yang 52,000 52,000 $ 55,000 $10,000 $ 12.50 Bit 13,000 13,000 $ - $ - $ 1.50 Total joint costs for Marshall in the recent month are $188,200, of which $80,926 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. Ying Yang Bit Manufacturing cost per unit Total gross margin First, this problem mentions that some of the joint costs are variable costs. This is not relevant to solving this problem. The joint costs that are to be allocated to the main products (Ying and Yang) should be NET of the NRV of the byproduct. The NRV of the byproduct is the sales value of the byproduct minus the disposal cost of the byproduct. So joint costs minus the byproduct's NRV = the net joint cost to allocate between Ying and Yang. This allocation to Ying and Yang is based on the relative NRV for these 2 products. The mfg cost/unit for Ying is the sum of the allocated net joint costs plus the separable costs divided by the number of units of Ying produced. The same calculation goes for Yang. The mfg cost/unit for the byproduct is just the NRV divided by the number of units of the byproduct. The gross margin for Ying and Yang is the sales dollars minus the joint costs minus the separable costs. The gross margin for the byproduct is the sales dollars minus the mfg costs allocated to the byproduct, which was just the NRV. That means that the gross margin for the byproduct turns out to be disposal costs for the byproduct