Torid Company processes 18,175 gallons of direct materials to produce two products,Product X and Product Y.Product X sells for $6 per gallon and Product Y,the main product,sells for $190 per gallon.The following information is for December:

The manufacturing costs totalled $29,000.
If the byproduct inventory is recorded at NRV less profit margin of 40%,the balance sheet will report ________ of byproduct inventory.
A)$900
B)$0
C)$3800
D)$540

Question

Torid Company processes 18,175 gallons of direct materials to produce two products,Product X and Product Y.Product X sells for $6 per gallon and Product Y,the main product,sells for $190 per gallon.The following information is for December:

The manufacturing costs totalled $29,000.
If the byproduct inventory is recorded at NRV less profit margin of 40%,the balance sheet will report ________ of byproduct inventory.
A)$900 
B)$0 
C)$3800 
D)$540

Quizplus · Accepted Answer

$900 × 60% = $540

Torid Company Processes 18,175 Gallons of Direct Materials to Produce