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: 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

  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.

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