How do I calculate manufacturing cost before separation for by products, using the market value (reversal cost) method for the following information:
Sales:
Main Product = $75,000
By-product A = $ 6,000
By-product B = $ 3,500
manufacturing cost after separation:
Main = $11,500
A = $1,100
B = $900
Marketing & Administrative expenses:
Main =$ 6,000
A = $ 750
B = $550
The question asks to calculate the manufacturing costs before split off for each product.
Profit allowed for A = 15% and B = 12%
I appreciate any help because I have searched my book and the web and can't figure it out.
Thanks in advance for any help,
Tammy