Crispy, Inc. is a producer of potato chips. A single production process at Crispy, Inc., yields potato chips asthe main product, as well as a byproduct that can be sold as a snack. Both products are fully processed bythe splitoff point, and there are no separable costs. For September 2020, the cost of operations is $520,000.Production and sales data are as follows:(Click the icon to view the production and sales data.)Data tablePotato ChipsByproductProduction (in pounds) Sales (in pounds)46,0008,200Deduct value of byproduct productionPrint34,960 $5,000 $DoneSelling Price per pound265XThere were no beginning inventories on September 1, 2020.Read the requirements.Requirements1. What is the gross margin for Crispy, Inc., under the production method and thesales method of byproduct accounting?2. What are the inventory costs reported in the balance sheet on September 30,2020, for the main product and byproduct under the two methods of byproductaccounting in requirement 1?3. Prepare the journal entries to record the byproduct activities under (a) theproduction method and (b) the sales method. Briefly discuss the effects on thefinancial statements.PrintDone-

Joint products are the products which are produced simultaneously, with the same raw material and…

Answered: Crispy, Inc. is a producer of potato…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Yum, Inc. is a producer of potato chips. A single production process at Yum, Inc., yields potato chips as the main product, as well as a byproduct that can 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 $485,000. Production and sales data are as follows: Note: There were no beginning inventories on September 1, 2020. Requirements Dialog content starts 1. What is the gross margin forbYum,Inc., under the production method and the sales method of byproduct accounting? 2. What are the inventory costs reported in the balance sheet on September 30, 2020, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? 3. Prepare the journal entries to record the byproduct activities under (a) the production method and (b) the sales method. Briefly discuss the effects on the financial statements.
Holy Cow is a producer of milk and byproducts. A single production process at Holy Cow yields milk as the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fully processed by the splitoff point, and there are no separable costs. For the month of October 2020, the cost of operations is $380,000. Production and sales data are as follows: (Click the icon to view the production and sales data.) There were no beginning inventories on October 1, 2020. Read the requirements. Requirements 1. What is the gross margin for Holy Cow under the production method and the sales method of byproduct accounting? 2. What are the inventory costs reported in the balance sheet on October 31, 2020, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? Print - X Done Data table Milk Ghee, byproduct Production (in gallons) 540,000 12,000 Print Sales (in gallons) Selling Price per Gallon 523,800 $ 11,400 $ Done 0.80…
Data table Milk Ghee, byproduct Production (in gallons) 580,000 13,000 Sales (in gallons) Selling Price per Gallon 556,800 $ 12,350 $ 1.00 0.60
Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milkas the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fullyprocessed by the splitoff point, and there are no separable costs. For the month of October 2020, the cost ofoperations is $335,000.Production and sales data are as follows: Cider Hill Farm is a producer of milk and byproducts. A single production process at Cider Hill Farm yields milk as the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fully processed by the splitoff point, and there are no separable costs. For the month of October 2020, the cost of operations is $335,000. Production and sales data are as follows: (Click the icon to view the production and sales data.) There were no beginning inventories on October 1, 2020. Read the requirements Requirement 1. What is the gross margin for Cider Hill Farm under…
Accounting for a main product and a byproduct (Cheatham and green, adapted)Crispy,Inc., is a producer of potato chips. A single production process at crispy, Inc., yields potato chips as the main product, as well as byproduct that can be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs. For September 2017, the cost of operations is $520,000. Production and sales data are as follows:
Accounting for a main product and a byproduct. (Cheatham and Green, adapted) Crispy, Inc., is a producer of potato chips. A single production process at Crispy, Inc., yields potato chips as the main product, as well as a byproduct that can be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs. For September 2017, the cost of operations is $520,000. Production and sales data are as follows: Production (lbs) Sales (lbs) Sell price per lb Potato Chips 46,000 34,960 $26 Byproducts 8200 5000 $5 There were no beginning inventories on September 1, 2017. What is the gross margin for Crispy, Inc., under the production method and the sales method of byproduct accounting? What are the inventory…
Guppy Inc. is a small distributor of mechanical pencils. Guppy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) Revenues Costs: Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.) Purchase cost of pencil packs Ordering costs Receiving and storage Shipping Total costs Operating income Total C Per Unit For 2019, Guppy buys 250,000 pencil packs at an average cost of $3 per pack and sells them to retailers at an average price of $7 per pack. Assume Guppy has no fixed costs and no inventories. Calculate Guppy's operating income for 2019.
Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. In 2019, company Yoda plans to increase the variable cost by $1 while the fixed cost and the selling price will remain constant. Calculate the number of units to be sold in order to earn the same profit as Malcom in 2019. Based on your answers to parts 1 and 2, Discuss which company has a safer financial position, and why. I need the answers of the the remaining subparts too all these three points
Press Products manufactures t-shirts. It has the following costs when its production level is 80,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Press's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Press's operating income if it accepts this special order. (Round all per unit amounts to the nearest cent, $X.XX, and all other amounts to the nearest whole dollar. Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the…
Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to produce, and they can be sold to another manufacturer for $20,000. Instead, Zycon can process the units further and produce finished Products X, Y, and Z. Processing further will cost an additional $22,000 and will yield total revenues of $35,000. Place an X in the appropriate column to identify whether the item is relevant or irrelevant to the sell or process further decision.
Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to produce, and they can be sold to another manufacturer for $20,000. Instead, Zycon can process the units further and produce finished Products X, Y, and Z. Processing further will cost an additional $22,000 and will yield total revenues of $35,000. Place an X in the appropriate column to identify whether the item is relevant or irrelevant to the sell or process further decision. Item Relevant Not Relevant a. $15,000 cost already incurred to produce b. $20,000 selling price c. $22,000 additional processing costs d. $35,000 revenues from processing
Fundador Inc. manufactures X product from a process that yields a by-product called Z. The by-product requires additional processing cost of P30,000. The by-product will require selling and administrative expenses totaling P20,000. It is Fundador’s accounting policy to charge the joint costs to the main product only. Information concerning a batch produced during the year ended December 31, 2020 follows: Product Units Produced Market Value at Split off Units Sold X 100,000 P50 60,000 Z 8,000 10 8,000 The Joint costs incurred up to split-off point are: Direct materials P2,000,000 Direct labor 800,000 Factory Overhead…

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