Stone Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can...
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Stone Resources, Inc., mines copper. Its smelting process also yields a byproduct, molybdenum, that can be sold for industrial use. Both products are sold at the splitoff point. Stone Resources started November 2017 with no inventories and spent $650,000 on operations that month. Production and sales information for November are given below: A (Click the icon to view the information for November.) What is the gross margin for Stone Resources, Inc., under the production method and the sales method of accounting for byproducts? Begin by calculating the gross margin under the production method and then the sales method. (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation. Enter all numbers in thousands of dollars.) Production method i More Info Revenues Main product Selling Price per Production (in tons) Sales (in tons) ton Byproduct Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventory Copper Molybdenum 30,000 4,150 22,500 3,450 $ 34 15 Print Done Cost of goods sold Gross margin Enter any number in the edit fields and then click Check
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