Creating income statement showing byproduct


Q1) Maryland Company makes lumber for companies who produce furniture. Main product is completed lumber with a byproduct of wood shavings. Byproduct is sold to plywood manufacturers. For July, manufacturing process incurred $332,000 in total costs. Eighty thousand board feet of lumber were made and sold along with 6,800 pounds of shavings. Finished lumber sold for $6.00 per board foot and shavings sold for $0.60 a pound. There was no starting or ending inventories.

Create the income statement showing byproduct (1) as cost reduction during production, and (2) as revenue item when sold.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Creating income statement showing byproduct
Reference No:- TGS018065

Expected delivery within 24 Hours