Joint Products; By-Products (Appendix) The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method. The two joint products are processed beyond the split-off point, incurring separable processing costs. There is a $1,000 disposal cost for the by-product. A summary of a recent month’s activity at Marshall is shown below:
Total joint costs for Marshall in the recent month are $265,000, of which $115,000 is a variable cost. Required 1. Calculate the manufacturing cost per unit for each of the three products. 2. Calculate the total gross margin for each product.
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