Helen Company Processes 30,000 Litres of Direct Materials to Produce

question 138

Essay

Helen Company processes 30,000 litres of direct materials to produce two products, Zander and Ifso.Zander, a byproduct, sells for $5 per litre, and Ifso, the main product, sells for $70 per litre.The following information is for July:
The manufacturing costs totalled $145,000; beginning inventory $3,000.Required:
1.Prepare a July income statement assuming that Helen Company recognizes the byproduct revenue at the time of sale.The company uses FIFO for the inventory flow assumption.2.Prepare the journal entry to record the byproduct sales.

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Definitions:

Weaned

The process of gradually introducing a young mammal to what will be its adult diet and withdrawing the supply of its mother's milk.

Erogenous Pleasure

refers to the experience of sexual pleasure from stimulation of areas of the body known as erogenous zones.

Source

The origin from which something comes, such as information, materials, or energy.

Dominant

Referring to a gene that actively controls the expression of a trait.