In the process of making hummus, Middle-East Foods is left with a slurry of chickpea husks and other left-over ingredients. Although the slurry has no real commercial value, the company has found that local farmers are willing to pay $4/bucket of the slurry (as a source of feed for livestock).
The manufacture of one batch (100) gallons of hummus requires $25 of direct materials, $60 of direct labor, and $10 of overhead. Making one batch also results in 10 buckets of slurry, which take an additional $10 to process for sale to local farmers. Hummus sells for $20/gallon.
What is the amount charged to Cost of Goods Sold for the sale of one batch of hummus and the byproducts?

Question

In the process of making hummus, Middle-East Foods is left with a slurry of chickpea husks and other left-over ingredients. Although the slurry has no real commercial value, the company has found that local farmers are willing to pay $4/bucket of the slurry (as a source of feed for livestock). 
The manufacture of one batch (100) gallons of hummus requires $25 of direct materials, $60 of direct labor, and $10 of overhead. Making one batch also results in 10 buckets of slurry, which take an additional $10 to process for sale to local farmers. Hummus sells for $20/gallon.
What is the amount charged to Cost of Goods Sold for the sale of one batch of hummus and the byproducts?

Quizplus · Accepted Answer

The Answer of In the process of making hummus, Middle-East Foods is left with a slurry of chickpea husks and other left-over ingredients. Although the slurry has no real commercial value, the company has found that local farmers are willing to pay $4/bucket of the slurry (as a source of feed for livestock). 
The manufacture of one batch (100) gallons of hummus requires $25 of direct materials, $60 of direct labor, and $10 of overhead. Making one batch also results in 10 buckets of slurry, which take an additional $10 to process for sale to local farmers. Hummus sells for $20/gallon.
What is the amount charged to Cost of Goods Sold for the sale of one batch of hummus and the byproducts?

In the Process of Making Hummus, Middle-East Foods Is Left