Ruth decided to try her hand at beekeeping. The costs that went into the harvesting...
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Ruth decided to try her hand at beekeeping. The costs that went into the harvesting process included the cost of the beehives, the original bee colony, and her own time and equipment. This past year, she harvested 176 pounds of honey and 44 pounds of honeycomb for a total cost of $2,000. She has several outlets for selling her organic honey. The average sales price at these outlets is $4 per 8 oz. jar. The honeycomb can be sold as well, for $3 per pound. If Ruth sells all of the honeycomb and 100 pounds of the honey that she harvested, how much gross margin will she recognize under (1) the sales value at split-off method and (2) the physical quantities method? (1) The sales value at split-off method (Round answers to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. 45.25 or parentheses e.g. (45.25).) (2) The physical quantities method (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45).)
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