Question

Torid Company processes​ 18,700 gallons of direct materials to produce two​ products, Product X and Product Y. Product X sells for​ $10 per gallon and Product​ Y, the main​ product, sells for​ $150 per gallon. The following information is for​ December: Beginning Ending Production Sales Inventory Inventory Product​ X: ​5,975 ​5,800 0 175 Product​ Y: ​10,575 ​10,655 100 20 The manufacturing costs totalled​ $30,000. How much is the ending inventory for the byproduct if byproducts are recognized in the general ledger at the point of​ sale?

Answer 1

Answer:

$0

Explanation:

Data given in the information

Product X is the byproduct.

In addition, the By products are recorded in the general ledger at the point of sale

So in this case, the quantity sold is considered only no other things would be recognized

Hence, in this the quantity sold and quantity produced is not recorded

Therefore , No ending inventory should be recognized in the general ledger for this by products