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

question 131

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:

Nucleus

The membrane-bound organelle in a eukaryotic cell that contains the chromosomes and controls the cell's growth and reproduction.

Microtubules

Microtubules are cylindrical structures made of tubulin proteins, part of the cell's cytoskeleton, playing crucial roles in cell division, shape, and transport.

Cytoskeleton

A complex network of interlinking protein filaments and tubules in the cytoplasm of cells, giving them shape, coherence, and the ability to move.

Support

The action or role of bearing the weight or stress of something, or providing assistance and stability when needed.