Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain how to calculate deduct main product inventory and complete the spaces below. River Resources, Inc., mines copper. Its smelting process also yields a

Please explain how to calculate deduct main product inventory and complete the spaces below.

image text in transcribed

River Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold for industrial use. Both products are sold at the splitoff point. River Resources started November 2017 with no inventories and spent $560,000 on operations that month. Production and sales information for November are given below: (Click the icon to view the information for November.) What is the gross margin for River Resources, Inc., under the production method and the sales method of accounting for byproducts? Begin by calculating the gross margin under the production method and then the sales method. (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation. Enter all numbers in thousands of dollars.) Production method i X Revenues More Info Main product $ 1,008,000 0 Byproduct Total revenues 1,008,000 Copper Production (in tons) Sales (in tons) Selling Price per ton 40,000 28,800 $ 35 4,200 3,350 $ 13 Molybdenum Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs 560,000 54,600 505,400 Print Done Deduct main product inventory Cost of goods sold Gross margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Identify the different methods employed in the selection process.

Answered: 1 week ago

Question

Demonstrate the difference between ability and personality tests.

Answered: 1 week ago