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CoursHeroTranscribedText: Accounting for Main Products and By-Products A chemical process product produces two main products (Delta and Echo) and one by-product (Golf) from a joint product (Beta). None of the products require processing after the split- off point. Information for last month's operations follows: Joint costs of production $15,000 Delta production (grams) 15,000 Price per 10 gram package $3.00 Sales last month (grams) 13.500 Echo production (Litsex) 10.000 Price per 4 L bottle $5.50 Sales last month (4 L bottles) 2,250 Golf production (grams) 1,500 Sales last month (grams) 1,250 Golf revenue $125 REQUIRED 1. What is the gross margin for last month if the by-product value is recognized at the time of production? 2. What is the gross margin for last month if the by-product value is recognized at the time of sale? 3. Calculate the inventory value for Delta, Echo, and Golf on the balance sheet under the methods used in Parts A and B. 4. Research and Development has suggested that Delta can be processed further into high-quality Indigo. The additional processing will cost $1.50 per 10 grams and there will be a 10% loss in the processing (i.e., 100 grams of Delta will yield go grams of Indigo). Indigo sells for $6.00 per 10 gram package. Should Delta be processed further? is (Curl) . Focus X

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