Moo Man is a producer of milk and byproducts. A single production process at Moo Man 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 $345,000. 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 Moo Man under the production method and the sales method of byproduct accounting? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Revenues Main product: Milk Byproduct: Ghee Total revenues Cost of goods sold: Net manufacturing costs Cost of goods sold Gross margin Sales Method Inventoriable costs (end of period) Main product: Milk Byproduct: Ghee Co Requirement 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? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Sales Method

Moo Man is a producer of milk and byproducts. A single production process at Moo Man 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 $345,000. 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 Moo Man under the production method and the sales method of byproduct accounting? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Revenues Main product: Milk Byproduct: Ghee Total revenues Cost of goods sold: Net manufacturing costs Cost of goods sold Gross margin Sales Method Inventoriable costs (end of period) Main product: Milk Byproduct: Ghee Co Requirement 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? (Complete all input fields. Enter a 0 for any zero balances.) Production Method Sales Method

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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