Accounting for a main product and a byproduct. (Cheatham and Green, adapted) Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc., yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are fully processed by the split off point, and there are no separable costs. For September 2012, the cost of operations is $500,000. Production and sales data are as follows:
|
Production (in pounds) |
Sales (in pounds) |
Selling Price per Pound |
|
|
Main Product: |
|||
|
Potato Chips |
52,000 |
42,640 |
$16 |
|
Byproduct |
8,500 |
6,500 |
$10 |