In the process of making vegetable stock, Freshly Gardened is left with soft vegetable scraps. Although the scraps have no real commercial value, the company has found that local farmers are willing to pay $5/container of the scraps (as a source of feed for livestock). The manufacture of one batch of vegetable stock (80 gallons) requires $70 of direct materials, $100 of direct labor, and $40 of overhead. Making one batch also results in 30 containers of scraps, which take an additional $50 to process for sale to farmers. Vegetable stock sells for $50/gallon.
What is the amount charged to Cost of Goods Sold for the sale of one batch of vegetable stock and the byproducts?

Question

In the process of making vegetable stock, Freshly Gardened is left with soft vegetable scraps. Although the scraps have no real commercial value, the company has found that local farmers are willing to pay $5/container of the scraps (as a source of feed for livestock). The manufacture of one batch of vegetable stock (80 gallons) requires $70 of direct materials, $100 of direct labor, and $40 of overhead. Making one batch also results in 30 containers of scraps, which take an additional $50 to process for sale to farmers. Vegetable stock sells for $50/gallon. 
What is the amount charged to Cost of Goods Sold for the sale of one batch of vegetable stock and the byproducts?

Quizplus · Accepted Answer

The Answer of In the process of making vegetable stock, Freshly Gardened is left with soft vegetable scraps. Although the scraps have no real commercial value, the company has found that local farmers are willing to pay $5/container of the scraps (as a source of feed for livestock). The manufacture of one batch of vegetable stock (80 gallons) requires $70 of direct materials, $100 of direct labor, and $40 of overhead. Making one batch also results in 30 containers of scraps, which take an additional $50 to process for sale to farmers. Vegetable stock sells for $50/gallon. 
What is the amount charged to Cost of Goods Sold for the sale of one batch of vegetable stock and the byproducts?

In the Process of Making Vegetable Stock, Freshly Gardened Is