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 split off point. River Resources started November 2017 with no inventories and spent $ 590000 on operations that month. Production and sales information for November are given below: cost accounting

What is the gross margin for River Resources, Inc., under the production method and the sales method of accounting for byproducts? Production method Sales method Revenues $ Main product Byproduct 669,240 $ O 669,240 60,800 669,240 730,040 Total revenues Cost of goods sold Total manufacturing costs 590,000 590,000 88,350 Deduct value of byproduct production Net manufacturing costs Deduct main product inventory 590,000 110363 501,650 110,363 391,287 277,953 Cost of goods sold 479637 $ 250403 Gross margin 1 More Info Copper Molybdenum Production (in tons) Sales (in tons) Selling Price per ton 22,000 17,160 $ 4,650 3,200 $