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?
Not what you're looking for?
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
Purchase this Solution
Solution Summary
You will find the answer to this puzzling question inside...
Solution Preview
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 ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.