The Redmond Recycling Company (RRC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms plastic into large sheels that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. RRC can produce 24 table covers, 70 chair covers and 8 pounds of package filler from 100 pounds of bottles. (Click the icon to view additional information.) Read the requirements. Requirement 1. Assume that RRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for RRC? First, allocate the joint costs. (Round the weighting values to two decimal places.) More Info Table Chair - Covers Covers Total Sales values at splitoff Weighting Joint costs allocated In June, RRC had no beginning inventory. It purchased and processed 110,000 pounds of bottles at a cost of $440,000. RRC sold 22,000 table covers for $16 each, 76,000 chair covers for $3 each, and 3,000 pounds of package filler at $0.90 per pound Now complete the statement below for RRC. (Do not round intermediary calculations. Only round the Print Done Table Chair Covers Covers Total Revenues Cost of goods sold: Joint costs allocated Enter any number in the edit fields and then continue to the next question. ? Save for Later Now complete the statement below for RRC. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Table Chair Covers Covers Total Revenues Cost of goods sold: Joint costs allocated Less: Ending inventory Cost of goods sold Gross margin Requirement 2. Assume that RRC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the sales method. What is the ending inventory cost for each product and gross margin for RRC? First, allocate the joint costs. (Round the weighting values to two decimal places.) Table Chair Covers Covers Total Sales values at splitoff Weighting Joint costs allocated Now complete the statement below for RRC. (If a box is not used in the table, leave the box empty; do not enter a zero. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Table Chair Plastic Covers Covers Filler (lbs) Total Revenues Cost of goods sold: Joint costs allocated Less: Ending inventory Cost of goods sold Gross margin Enter any number in the edit fields and then continue to the next question. Save for Later Requirement 3. Discuss the difference between the two methods of accounting for byproducts, focusing on what conditions are necessary to use each method. The production method of accounting for the byproduct is only appropriate if Moreover, RRC should view the byproduct's contribution to the firm as material enough to find it worthwhile to record and track any inventory that may arise. The sales method is appropriate if for RRC to keep track of byproduct inventories. V or if the amounts involved are so as to make it economically The Gross Margin for RRC's byproduct is of the total company Gross Margin. RRC should probably use the V based on the Vamount involved with the byproduct. Enter any number in the edit fields and then continue to the next question. ? Save for Later