Sherman Company produces two main products jointly, A and B, and C, which is a by-product of B.
Costs before separation are apportioned between the two main products by the net realizable value method. The net revenue realized from the sale of C is deducted from the cost of B. A and B are produced from the same raw material. C is manufactured from the residue of the process creating B. Data for April were as follows:
Required: Determine the gross profit for April.

Question

Sherman Company produces two main products jointly, A and B, and C, which is a by-product of B.
Costs before separation are apportioned between the two main products by the net realizable value method. The net revenue realized from the sale of C is deducted from the cost of B. A and B are produced from the same raw material. C is manufactured from the residue of the process creating B. Data for April were as follows:
  Required: Determine the gross profit for April.

Quizplus · Accepted Answer

The Answer of Sherman Company produces two main products jointly, A and B, and C, which is a by-product of B.
Costs before separation are apportioned between the two main products by the net realizable value method. The net revenue realized from the sale of C is deducted from the cost of B. A and B are produced from the same raw material. C is manufactured from the residue of the process creating B. Data for April were as follows:
  Required: Determine the gross profit for April.

Sherman Company Produces Two Main Products Jointly, a and B