1. : Gamma Pharmaceuticals Inc.

Scenario: By-Product Cost Allocation

Product Details:

• Main Product:
  • Sales Revenue: $500,000
  • Production Costs: $300,000
  • By-Product Revenue: $50,000
  • By-Product Separation Costs: $20,000

Requirements:

• Allocate joint production costs between the main product and its by-product using the sales value method. Present calculations in a table format showing allocated costs and net revenues for each product.