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# Troy Company: How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at NRV during production? How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?

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Use the information below to answer questions 22 - 23.

Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X sells for \$4 per litre, and Product Y, the main product, sells for \$50 per litre. The following information is for August:
Beginning Ending
Production Sales Inventory Inventory___
Product X 4,375 4,000 0 375
Product Y 10,000 9,625 125 500

The manufacturing costs totaled \$15,000.

22. How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at NRV during production?
a. \$16,000 b. \$0 c. \$17,500 d. \$1,500 e. \$14,375

23. How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at the point of sale?
a. \$563 b. \$17,500 c. \$16,000 d. \$1,500 e. \$0