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Question 56

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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:
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 $15,000. -How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at NRV during production? A)  $0 B)  $1,500 C)  $14,375 D)  $16,000 E)  $17,500 The manufacturing costs totalled $15,000.
-How much is the ending inventory reduction for the byproduct if byproducts are recognized in the general ledger at NRV during production?


A) $0
B) $1,500
C) $14,375
D) $16,000
E) $17,500

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