Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. amy owns operates a fruit smoothie manufacturing o

Amy owns operates a fruit smoothie manufacturing operations, Nutri-smoothie. She processes fruit and adds it...

90.2K

Verified Solution

Question

Accounting

Amy owns operates a fruit smoothie manufacturing operations, Nutri-smoothie. She processes fruit and adds it to yogurt and produces fruit smoothies, the main product. She sells the rinds and other waste to a recycling organization that turns the waste into compost. Neither product requires processing after the split-off point. Information for last month's operations follows:

Joint costs of smoothie production$11,800Smoothie production (in 1/2 L bottles)24,000Price per bottle$2Sales last month (bottles)22,000Compost production18,000 kgCompost sales 16,000 KgCompost revenue$2000

Required:

(a): What is Nutri-smoothie's gross margin for last month if the by-product value is recognized at the time of production?

(b): What is Nutri-smoothie's gross margin for last month if the by-product value is not recognized at the time of production?

(c): Calculate the inventory Value for both smoothie and compost on balance sheet under the method used in Part A and Part B.

Note: Please give the correct answer

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students