The income statement

Methods commonly us in industry are Method Method. Is a common noncost procure in which ending inventory costs of the primary product are overstat to the extent that some costs are includ in byproducts. However this deficiency is eliminat to some extent in Method d although the value of sales and not costs is duct from the production costs of the main product. a Byproduct income as other income To illustrate this procure the following income statement is present Rp Rp Sales main product units Rp.

HP Initial inventory

Units Rp Total production costs Poland WhatsApp Number List units Rp. The cost of goods available for sale Ending inventory units Rp. Gross profit Marketing and administration costs Operating income Other income income from sales of byproducts byproduct Profit before income tax b Byproduct income as additional sales income In this case the income statement above would show that the revenue of from byproduct sales was in addition to sales of the main product. As a result total sales revenue will be and gross profit and operating income will increase. The other numbers will remain the same.

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Byproduct income as

Aduction from cost of goods sold Iran Phone Number List In this case the revenue of from byproducts would be subtract from the cost of goods sold figure of thereby lowering costs and increasing gross profit and operating income. Profit before tax remains at . d Byproduct revenues are duct from production costs In this case the revenue of from byproduct sales is subtract from the total production costs of resulting in a revis production cost of . These revis costs result in a new average unit cost of for the primary product. Ending inventory will be not . will look as follows Rp Rp Rp Sales Main product units Rp. HPP Initial inventory units Rp. Total production costs units Rp. Income from sales of byproducts byproducts.

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