Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tasty, inc., is a producer of potato chips. a sing

Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc.,...

70.2K

Verified Solution

Question

Accounting

Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc., yields potato chips as the main product and a byproduct that can also be sold as snack. Both products are fully processed by the splitoff point, and there are no separable costs.

For September 2020, the cost of operation is $300,000. Production and sales data are as follows:

Production (in pounds) Sales (in pounds) Selling Price per Pound

Main Product:

Potato Chips 80,000 72,000 $20

Byproduct 8,000 6,000 $5

There were no beginning inventories on September 1, 2020.

Required: What are the inventory costs reported in the balance sheet on September 30, 2020, for the main product and byproduct under the production method and the sales method of byproduct accounting?

The production method The sales method

Main products: ? ?

Byproducts: ? ?

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