Problem 7-48 (Algo) 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 $1,800 disposal cost for the by-product. A summary of a recent months activity at Marshall is shown below:

	Ying	Yang	Bit
Units sold	90,000	72,000	18,000
Units produced	90,000	72,000	18,000
Separable processing costsvariable	$ 252,000	$ 78,000	$
Separable processing costsfixed	$ 18,000	$ 12,000	$
Sales price	$ 6.00	$ 12.50	$ 1.50

Total joint costs for Marshall in the recent month are $245,200, of which $105,436 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