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Woody City Manufacturing mills lumber for companies who manufacture furniture. The main product is finished lumber with a byproduct of wood shavings. The byproduct is
Woody City Manufacturing mills lumber for companies who manufacture furniture. The main product is finished lumber with a byproduct of wood shavings. The byproduct is sold to plywood manufacturers. For July, the manufacturing process incurred $ in total costs. Eighty thousand board feet of lumber were produced and sold along with pounds of shavings. The finished lumber sold for $ per board foot and the shavings sold for $ a pound. There were no beginning or ending inventories.
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Prepare an income statement showing the byproduct as a cost reduction during production, and as a revenue item when sold. Provide the journal entries for each method
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