Calculate the cost of finished goods inventory

Assignment Help Financial Management

Reference no: EM131896872

Illinois Soybeans operates a processing plant in which soybeans are crushed to create soybean oil and soybean meal. The company purchases soybeans by the bushel (49 pounds). From each bushel, the normal yield is 11 pounds of soybean oil, 33 pounds of soybean meal, and 5 pounds of waste. For March, Illinois Soybeans purchased and processed 4,807,000 bushels of soybeans. The yield in March on the soybeans was equal to the normal yield. The following costs were incurred for the month: Soybeans $47,100,500 Conversion costs 2,235,000 At the end of March, there was no in-process or raw material in inventory. Also, there was no beginning Finished Goods Inventory. For the month, 56 percent of the soybean oil and 68 percent of the soybean meal was sold.

a. Allocate the joint cost to the joint products on the basis of pounds of product produced.

Oil $

Meal

Total $

b. Calculate the cost of goods sold for March.

Oil $

Meal

Total $

c. Calculate the cost of Finished Goods Inventory at the end of March.

Oil $

Meal

Total

Reference no: EM131896872

Questions Cloud

Constitute assessable income : Would the following constitute assessable income?

Calculate the after-tax rate of return-the real return : calculate the after-tax rate of return, the real return and the total monetary return. What are the implications of this result for cash management decisions

Income from illegal activities is not assessable : “Income from illegal activities is not assessable to income tax”. Discuss this statement.

Discuss the general characteristics of income : Briefly discuss the general characteristics of income.

Calculate the cost of finished goods inventory : Illinois Soybeans operates processing plant in which soybeans are crushed to create soybean oil-soybean meal. Calculate cost of Finished Goods Inventory.

The roth ira allows you to have tax free retirement plan : The ROTH IRA allows you to have tax free retirement plan. How can “tax free” help you accomplish your retirement goals?

Expected return on equity under each current asset level : What is the expected return on equity under each current asset level?

Dividend growth model-what should be price of company stock : Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2013)?

What is the NPV of project : A U.S. company plans to lease a manufacturing facility in Canada for 2 years. What is the NPV of the project?

User Account

All Pages