(Joint cost allocation; by products) Ring Corporation, which began operations in 2010, produces gasoline and a gasoline by product. The following information is available pertaining to 2010 sales and production:
|
Total production costs to split off point |
$240,000 |
|
Gasoline sales |
540,000 |
|
By product sales |
60,000 |
|
Gasoline inventory, 12/31/2010 |
30,000 |
|
Additional by product costs: |
|
|
Marketing |
$20,000 |
|
Production |
30,000 |
Ring Corp. accounts for the by product at the time of production. Compute Ring’s cost of sales for gasoline and for the by product for the year.