Question
Given: Joint costs for log production are $600,000 Production Sales Inventory Lumber (board feet) 300,000 270,000 30,000 Scraps (per log) 1000 pcs 900 pcs 100
Given: Joint costs for log production are $600,000
Production Sales Inventory
Lumber (board feet) 300,000 270,000 30,000
Scraps (per log) 1000 pcs 900 pcs 100 pcs
Lumber can be sold for $3 per board foot. The scraps can be sold for $10 per piece.
Required: Create Income Statements using the by-product value recognized at the time of: A. Sale Method B. Production Method
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Auditing
Authors: Thomas D. Hubbard, J. R. Johnson, Steve Johnson, Joel D. Hubbard
6th Edition
0873932609, 9780873932608
