The Carolina Company Prepares Lumber for Companies Who Manufacture Furniture

question 81

Essay

The Carolina Company prepares lumber for companies who manufacture furniture.The main product is finished lumber with a byproduct of wood shavings.The byproduct is sold to plywood manufacturers.For July,the manufacturing process incurred $332,000 in total costs.Eighty thousand board feet of lumber were produced and sold along with 6,800 pounds of shavings.The finished lumber sold for $6.00 per board foot and the shavings sold for $0.60 a pound.There were no beginning or ending inventories.
Required:
Prepare an income statement showing the byproduct (1)as a cost reduction during production,and (2)as a revenue item when sold.

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Definitions:

Recalled

Brought back into one's mind; remembered.

Flashbulb Memories

Vivid, detailed recollections of significant or traumatic events, which are imprinted with high clarity as if taken by a camera’s flash.

Vivid

Descriptive of something strikingly bright or intense, either visually or in terms of perception, making it likely to attract attention or create a strong impression.

Emotional Areas

Regions within the brain, such as the amygdala and prefrontal cortex, that are fundamentally involved in processing, regulating, and responding to emotional stimuli.