Accounting for a main product and a byproduct. (Cheatham and Green, adapted) Tasty, Inc., is a…


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Accounting for a main product and a byproduct. (Cheatham and Green, adapted) Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc., yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are fully processed by the split off point, and there are no separable costs. For September 2012, the cost of operations is $500,000. Production and sales data are as follows: Production (in pounds) Sales (in pounds) Selling Price per Pound Main Product: Potato Chips 52,000 42,640 $16 Byproduct 8,500 6,500 $10

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