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# Proportion of Gross Production and Net Production

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A study of energy flow in a Georgia salt marsh revealed that gross production was about 36,380 kcal/square meter/year of which 7,900 kcal/square meter/year formed detritus and 305 kcal/square meter/year was consumed by insects.

a. What proportion of gross production was used for respiration? Show calculations.

b. What proportion of net production went directly to consumers? Show calculations.

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A study of energy flow in a Georgia salt marsh revealed that gross
production was about 36,380 kcal/square meter/year of which 7,900 kcal/square
meter/year formed ...

#### Solution Summary

The solution determines what proportion of gross production was used for respiration. It also considers what proportion of net production went directly to consumers.

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## Cost Accounting, Net Realizable Value Method - J-M Company

I need to understand how to solve the problem, not just the answers.

J-M Company uses a joint process costing \$15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow:
Units U Produced Sales val separable sales val aft Units
at split off costs further proc. Sold
S 500 \$5,000 \$500 \$7,000 400
T 450 6,000 650 9,000 300
R 300 9,000 700 10,000 250

In the following questions, compute the allocation of joint costs for each product and then use that information to determine gross profit and ending inventory values for the products. Note that only some of the products are sold and some remain in inventory. (Hint: Once you compute the gross profit, adjust it for the proportion of units sold; once you compute total costs, adjust that for units in ending inventory).

8. If J-M uses the net realizable value method and performs further processing after the split-off point, what is the gross profit for product R?
a. \$4,603
b. \$2,936
c. \$3,224
d. \$3,603

9. If J-M uses the net realizable value method and performs further processing after the split-off point, what is the carrying value of the ending inventory for product S?
a. \$803
b. \$1,134
c. \$907
d. \$1,009

10. If J-M sells products at the split-off point and uses the relative sales value at split-off point method to allocate joint costs, what is the carrying value of ending inventory for product T?
a. \$1,717
b. \$2,575
c. \$2,250
d. \$1,500

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