Base your answer on the following data from Ryder Furniture Corporation for October.
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Ryder Furniture Corporation for October
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Quantity
|
|
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Work in Process - Beginning
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- 0 -
|
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Started in Production - Current Month
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3,500
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Transferred Out to Next Department
|
3,200
|
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By-Product Removed
|
300
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Work in Process - Ending
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- 0 -
|
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Common Costs
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|
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Materials
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$59,850
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Labor
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15,400
|
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Overhead
|
11,200
|
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Total
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$86,450
|
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Additional Processing of By-Product
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|
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Materials
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$ 3,630
|
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Labor
|
1,905
|
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Overhead
|
1,275
|
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Total
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$ 6,810
|
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Other Data
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|
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Sales Price of By-Product
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$40.00 per unit
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Selling and Administrative Costs
|
10 percent of sales
|
|
Normal Net Profit
|
5 percent of sales
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What is the total estimated manufacturing cost of the by-product using the reversal cost method?
What is the estimated manufacturing cost before separation, using the reversal cost method?