Determine the cost of food wrapping and book covers

Assignment Help Accounting Basics

Reference no: EM131812296

Pyramid Printing Company is a printer of magazines and retail inserts. In addition, there are two joint products (food wrapping and book covers) and one byproduct (shipping-box inserts) that originate from the trimmings of Pyramid's paper rolls in production. The food wrapping and book covers are the same size. The shipping-box inserts are sold to online retailers for shipping books. All joint products and byproducts are sold as sustainable alternatives to other recycling opportunities. Pyramid's cost information by process follows: Pyramid Products Pounds of Production Cost Magazines 400,000 $ 1,400,000 Retail inserts 360,000 $ 1,000,000 Food wrapping 100,000 $ 1,200,000 Book covers 240,000 $ 1,600,000 Shipping-box inserts 20,000 $ 40,000 The shipping-box inserts are able to be sold for $800,000 to online retailers.

Requirements:

1 Determine the cost of food wrapping and book covers if the sales method is used for shipping-box inserts.

2 Determine the cost of food wrapping and book covers if the production method is used for shipping box inserts.

3 Which method would you suggest is the best for Pyramid?

Reference no: EM131812296

Questions Cloud

Compute the equivalent units for the month : Assume that the company uses the FIFO method of accounting for units and costs. 1. Compute the equivalent units for the month for the first processing

Analyze how the different types of facilities work together : Analyze the purpose and goals of each of the different types of health care facilities in the US.Analyze who is responsible for the oversight of the facilities.

What was the most interesting thing you learned from video : What was the most interesting thing you learned from this video? Do you think internet/web should be regulated? If Yes How? If no, why?

Compute the equivalent units of input resources : Compute the equivalent units of input resources for the Coating Department

Determine the cost of food wrapping and book covers : Determine the cost of food wrapping and book covers if the sales method is used for shipping-box inserts.

Provide for efficiency in the processing of data traffic : provide for efficiency in the processing of data traffic. This command line interface offers an administrator's interface for configuring logical segmentation.

What is the probability that a man in the us is a smoker : According to the CDC (Centers for Disease Control and Prevention), men who smoke are 23 times more likely to develop lung cancer than men who don't smoke.

What is the amount and character of jessie gain : Jessie sold a piece of land held for investment for $250,000. Jessie bought the land two years ago for $195,000. What is the amount and character of Jessie's ga

Will groundwater sustainability be affected : If current human development does not change, will groundwater sustainability be affected?

User Account

All Pages