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 recognition of the byproduct, if byproducts are recognized when production is completed, and the company uses FIFO?
A)$17,500
B)$16,000
C)$16,844
D)$17,300
E)$16,625

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 recognition of the byproduct, if byproducts are recognized when production is completed, and the company uses FIFO?
A)$17,500 
B)$16,000 
C)$16,844 
D)$17,300 
E)$16,625

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 recognition of the byproduct, if byproducts are recognized when production is completed, and the company uses FIFO?
A)$17,500 
B)$16,000 
C)$16,844 
D)$17,300 
E)$16,625

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