What is the estimated manufacturing cost before separation

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Reference no: EM13342523

Problem

Base your answer on the following data from Ryder Furniture Corporation for October.

 

Ryder Furniture Corporation for October

 

Quantity  

 

    Work in Process - Beginning

- 0 -

   Started in Production - Current Month

3,500

   Transferred Out to Next Department

3,200

   By-Product Removed

300

   Work in Process - Ending

- 0 -

Common Costs

 

    Materials

$59,850

    Labor

15,400

    Overhead

  11,200

       Total

$86,450

Additional Processing of By-Product

 

    Materials

$ 3,630

    Labor

1,905

    Overhead

   1,275

       Total

$ 6,810

Other Data

 

Sales Price of By-Product

$40.00 per unit

Selling and Administrative Costs

10 percent of sales

Normal Net Profit

5 percent of sales

 

What is the total estimated manufacturing cost of the by-product using the reversal cost method?

What is the estimated manufacturing cost before separation, using the reversal cost method?

 

Reference no: EM13342523

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