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Richardson Farm is a producer of milk and byproducts. A single production process at Richardson Farm yields milk as the main product, as well as

Richardson Farm is a producer of milk and byproducts. A single production process at Richardson Farm yields milk as the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fully processed by the split-off point, and there are no separable costs. For the month of October 2020, the cost of operations is $ 335,000. Production and sales data are as follows and there were no beginning inventories on October 1, 2020:

-ХData tableProduction(in gallons)570,00020,000Sales (in Selling Pricegallons)per Gallon558,600 $1.2018,800 $0.7

Requirements1. What is the gross margin for Richardson Farm under the production methodand the sales method of byproduct ac  

Data table Selling Price per Gallon Production Sales (in (in gallons) gallons) Milk 570,000 558,600 $ 1.20 Ghee, byproduct 20,000 18,800 $ 0.70

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