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 $95,000.
-What is the net effect to the income statement for the sale of byproduct, if byproducts are recognized at the point of sale?
A)$0
B)$1,500
C)$16,000
D)$17,500
E)$20,000

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 $95,000.
-What is the net effect to the income statement for the sale of byproduct, if byproducts are recognized at the point of sale?
A)$0 
B)$1,500 
C)$16,000 
D)$17,500 
E)$20,000

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 $95,000.
-What is the net effect to the income statement for the sale of byproduct, if byproducts are recognized at the point of sale?
A)$0 
B)$1,500 
C)$16,000 
D)$17,500 
E)$20,000

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