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Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc., yields potato chips as the main product and a byproduct
Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc., yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs. For September 2020, the cost of operations is $500,000. Production and sales data are as follows: Production (in pounds) Sales (in pounds) Selling Price per pound Main Product: Potato Chips 52,000 Byproduct 8,500 42,640 6,500 $16 $10 There were no beginning inventories on September 1, 2020. What is the gross margin for Tasty, Inc., under the production method of byproduct accounting? : a. $340,300 b. $337,240 c. $682,240 d. $341,940
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