mig co which began operations in 2005 produces gasoline and a gasoline by product th 630931
Mig Co., which began operations in 2005, produces gasoline and a gasoline by-product. The following information is available pertaining to 2005 sales and production:
|
Total production costs to split-off point |
$120,000 |
||
|
Gasoline sales |
270,000 |
||
|
By-product sales |
30,000 |
||
|
Gasoline inventory, 12/31/05 |
15,000 |
||
|
Additional by-product costs: |
|||
|
Marketing |
10,000 |
||
|
Production |
15,000 |
||
Mig accounts for the by-product at the time of production. What are Mig’s 2005 cost of sales for gasoline and the by-product?
|
Gasoline |
By-product |
|
|
a. |
$105,000 |
$25,000 |
|
b. |
$115,000 |
$0 |
|
c. |
$108,000 |
$37,000 |
|
d. |
$100,000 |
$0 |