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

The ending inventory for the byproduct, Product X, is valued at $58,000, which is calculated by multiplying the ending inventory of 5,800 gallons by the selling price of $10 per gallon.

Step-by-step explanation:

To calculate the ending inventory for the byproduct, we first need to understand that byproducts are typically accounted for at the point of sale. In this case, we are given data for two products, Product X and Product Y - where Product Y is the main product. Since Product X does not have any production mentioned, we can infer that it is the byproduct. Based on the information given, Product X had a beginning inventory of 5,975 gallons and an ending inventory of 5,800 gallons. Since there was no production added, the difference is the quantity sold, which is 175 gallons (5,975 - 5,800).

We also know that Product X sells for $10 per gallon. To value the ending inventory for the byproduct, we take the gallons of ending inventory multiplied by the selling price. The calculation will be as follows:

• Ending inventory for Product X (byproduct): 5,800 gallons
• Selling price per gallon for Product X: $10
• Value of the ending inventory: 5,800 gallons x $10/gallon = $58,000

Hence, the value of the ending inventory for the byproduct is $58,000.

Answer 2

$0

Step-by-step 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