Honey Bees produces pure honey and distributes it in 8 oz bottles. While harvesting and packaging the honey, pollen is collected and sold to another distributor that uses it to make Bee Bread. The honey is sold for $7 per bottle, and the pollen is sold for $1.50 per pound. Honey Bees produced 20,000 lbs of honey and 2,000 lbs of pollen. Instructions
a.Assuming Honey Bees uses the production method to account for by-products, record the journal entry to record the sale of the pollen.
b.Assuming Honey Bees uses the sales method to account for by-products, record the journal entry to record the sale of the pollen.
c.Explain how the by-product benefits the company's income in each of the above methods.

Question

Quizplus · Accepted Answer

The Answer of Honey Bees produces pure honey and distributes it in 8 oz bottles. While harvesting and packaging the honey, pollen is collected and sold to another distributor that uses it to make Bee Bread. The honey is sold for $7 per bottle, and the pollen is sold for $1.50 per pound. Honey Bees produced 20,000 lbs of honey and 2,000 lbs of pollen. Instructions
a.Assuming Honey Bees uses the production method to account for by-products, record the journal entry to record the sale of the pollen.
b.Assuming Honey Bees uses the sales method to account for by-products, record the journal entry to record the sale of the pollen.
c.Explain how the by-product benefits the company's income in each of the above methods.

Honey Bees Produces Pure Honey and Distributes It in 8