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SPY Company processes 30,000 gallons of direct materials to produce two products, Product X and Product Y. Product X, the byproduct, sells for $2
SPY Company processes 30,000 gallons of direct materials to produce two products, Product X and Product Y. Product X, the byproduct, sells for $2 per gallon and Product Y, the main product, sells for $50 per gallon. The following information is for August: Production Product X (in gallons): 6,000 Product Y in gallons): 24,000 Sales Beginning inventory. Ending Inventory 4,000 24,000 2,000 The manufacturing costs totaled $30,000. How much is the cost of goods sold in August if byproducts are recognized in the general ledger at the point of sales? O non of the answers. O $18,000 O$30,000 O $26,000 $22,000
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