Question

Millner Chemical Company manufactures and sells Goody, a product that sells for $15 per pound. The manufacturing process also yields 1 pound of a waste product, called Baddy, in the production of every 10 pounds of Goody. Disposal of the waste product costs $2 per pound. During August, the company manufactured 120,000 pounds of Goody. Total manufacturing costs were as follows: Requirement Determine the cost per pound of Goody.

Answer 1

To calculate the cost per pound of Goody, add the total manufacturing costs to the disposal cost for the waste product Baddy, then divide by the total pounds of Goody produced. The total disposal cost for Baddy can be found by multiplying the amount of Baddy produced with its per pound disposal cost. The final step is to divide this total cost by the number of pounds of Goody produced to get the cost per pound.

Step-by-step explanation:

The cost per pound of Goody produced by Millner Chemical Company can be calculated by totaling all the manufacturing costs and adding the disposal costs for the waste product Baddy. Since there is 1 pound of Baddy for every 10 pounds of Goody, and the disposal cost per pound of Baddy is $2, we will also consider this as part of the production cost of Goody. To find the cost per pound, we divide the total costs by the total pounds of Goody produced.

Assuming the provided numbers are from August and taking into account the 120,000 pounds of Goody manufactured, we would proceed as follows:

1. Calculate the total pounds of Baddy produced: 120,000 pounds of Goody / 10 = 12,000 pounds of Baddy.
2. Calculate the total disposal cost for Baddy: 12,000 pounds of Baddy x $2 per pound = $24,000.
3. Add the disposal cost to the total manufacturing costs (the actual manufacturing cost needs to be provided).
4. Divide this sum by the total pounds of Goody to find the cost per pound of Goody.

Without the actual total manufacturing costs provided, we cannot calculate the final cost per pound of Goody.