Use the information below to answer the following question(s).
Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X, a byproduct, sells for $4 per litre, and Product Y, the main product, sells for $50 per litre. The following information is for August:
The manufacturing costs totalled $15,000.
-How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at NRV during production?
A) $0
B) $1,500
C) $14,375
D) $16,000
E) $17,500

Question

Use the information below to answer the following question(s).
Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X, a byproduct, sells for $4 per litre, and Product Y, the main product, sells for $50 per litre. The following information is for August:
  The manufacturing costs totalled $15,000.
-How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at NRV during production?
A) $0 
B) $1,500 
C) $14,375 
D) $16,000 
E) $17,500

Quizplus · Accepted Answer

The Answer of Use the information below to answer the following question(s).
Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y. Product X, a byproduct, sells for $4 per litre, and Product Y, the main product, sells for $50 per litre. The following information is for August:
  The manufacturing costs totalled $15,000.
-How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at NRV during production?
A) $0 
B) $1,500 
C) $14,375 
D) $16,000 
E) $17,500

Use the Information Below to Answer the Following Question(s)