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Torid Company processes 18,350 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $7 per gallon
Torid Company processes 18,350 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $7 per gallon and Product Y, the main product, sells for $190 per gallon. The following information is for December Production Sales Beginning Inventory Ending Inventory Product X Product Y 5,625 5,500 0 125 10,575 10,620 75 30 The manufacturing costs totaled $25,000. If the byproduct inventory is recorded at NRV less profit margin of 40%, the balance sheet will report OA. $5,700 B. $875 OC. SO OD. $525 of byproduct inventory
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