NAMA : KEVIN PUTRA SENAWI

NIM : A031201108
KELAS : AKUNTANSI BIAYA KELAS D
PRODI : AKUNTANSI
FAKULTAS : EKONOMI DAN BISNIS
TUGAS SOAL BY-PRODUCT

Soal:

The Huffly Manufacturing Corporation uses a process cost system and presents you with the
following information :

Main Products:
Units sold…………………………………………………………………….. 20,000
Units produced…………………………………………………………….. 25,000
Selling price per unit…………………………………………………….. $10
Marketing and administrative expenses………………………….. $60,000
Total production costs in Department 1………………………….. $150,000

By-product:
Units sold……………………………………………………………………. 900
Units produced……………………………………………………………. 1,200
Selling price per unit....................................................... $3
Marketing and administrative expenses…………………………. $300
Additional processing costs in Department 2………………….. $800
Expected gross profit…………………………………………………… 30%

The main products and by-product split off at the end of Department 1. The by-product is
transferred to Department 2 for additional processing. The main products need no additional
processing. No beginning or ending work-in-process inventories exist. Ignore in- come taxes.

Required: Prepare income statements for the Huffy Manufacturing Corporation under the
following assumptions:
a. Net by-product income treated as other income
b. Net by-product income treated as a deduction from cost of goods sold of the mam products
sold
c. Expected value of the by-product produced treated as a deduction from the total pro
duction costs using the:
1. Net realizable method
2. Reversal cost method
Jawab:

a. Net by-product income treated as other income:

Sales (main products) (20,000 x $10) ................................................................. $200,000

Cost of main products sold:
Total production costs.................................................................... $150,000
Less: Ending inventory (5,000 x $6.00*) ……………………………………… 30,000
Total cost of main product sold................................................................. 120,000
Gross profit……………………………………………………………………………………. $ 80,000
Marketing and administrative expenses of main products……………………………… 60,000
Income from operations........................................................................... $ 20,000
Other income:
Net by-product income ($2,700 -($300 + $800) ............................................ 1,600
Net income.............................................................................................. $ 21,600

150,000 / 25,000 units = $6.00 per unit

900-unit x $3 per unit = $2,700

b. Net by-product income treated as a deduction from cost of goods sold of the
main products sold:

Sales (main products) ……………………………………………………………………………………. $200,000

Cost of main products sold:
Total production costs………………………………………………………………… $150,000
Less: Ending inventory (see part a) ……………………………………………. 30,000
Total cost of main products sold……………………………………………. $120,000
Less: Net by-product income (see part a) ………………………………. 1,600 118,400
Gross profit……………………………………………………………………………………. $ 81,600
Marketing and administrative expenses of main products…………………………………. 60,000
Net income………………………………………………………………………………………………. $ 21,600

c. 1). value of the by-product produced, using the net realizable method, treated
as a deduction from total production costs:

Sales (main products) ……………………………………………………………………………………. $200,000

Cost of main products sold:
Total production costs………………………………………………………………… $150,000
Value of by-product produced [$3,600 ($300 + $800)] ………………… 2,500
Net production costs……………….……………………………………………. $147,500
Less: Ending inventory (5,000 x $5.90) ….……………………………… 29,500 118,000
Gross profit ……………………………………………………………………………………. $ 82,000
Marketing and administrative expenses of main products…………………………………. 60,000
Net income. ……………………………………………………………………………………………… $ 22,000

*1,200 units produced x $3.00 per unit = $3,600

$ 147,500 / 25,000 per unit = $5.90 per unit
 2). Value of the by-product produced, using the reversal cost method, treated
as a deduction from total product costs:

Sales:
Main product (20,000 x $10) ……………………………………………………. $200,000
By-product (900 x $3) ……………………………………………………………… 2,700 $202,700
Cost of main product and by-product sold:
Production costs:
Main product (see schedule A) ………………………… $148,000
By-product (see schedule B) ……………………………. 2,520 $150,800
Less ending inventory:
Main product [($148,280+ 25,000) x 5,000] ……. $ 29,656
By-product [($2,520 + 1,200) x 300] ………………. 630 $ 30,286 120,514
Gross profit…………………………………………………………………………………. $ 82,186
Marketing and administrative expenses:
Main product………………………………………………………………………. $ 60,000
By-product…………………………………………………………………………. 300 60,300
Net income………………………………………………………………………………………. $ 21,886

Schedule A: Production
Cost of Main Product

Total Production costs of Department 1………………………………………………………. $150,000

Less joint costs applicable to by-products produced:
Estimated revenue from by-product sales (1,200 units-
produced x $3 per unit) ……………………………………………………… $3,600
Less: Expected additional processing cost
(Department 2) ……………………………………………… $ 800
Expected gross profit for by-product
(30% x $3,600) ……………………………………………… 1,080 1,880 1,720
Production cost of main product…………………………………………………………. $148,280

Schedule B: Production
Cost of By-Product

Joint costs applicable to by-products (see schedule A) ………………………………………. $1,720

Additional processing costs after split off from Department 1……………………………… 800
Production costs of by-product……………………………………………………………………… $2,520