Arguillo Inc. is a 5,000 acre farm that produces two products: Zilla and Corma. Zilla sells for $3.50 per bushel (assume that a bushel weighs 60 pounds). Without further processing, Corma sells for $30 per ton (a ton equals 2,000 pounds). If the Corma is processed further, it can be sold for $45 per ton. In 2010, total joint cost up to the split-off point was $875,000.

In 2010, Arguillo produced 70 bushels of Zilla and 1 ton of Corma per acre. If all the Corma were processed further, separate costs would be $50,000.

Prepare the 2010 journal entries for Corma if it is:

a. Transferred to storage at sales value as a by-product without further processing with a corresponding reduction of Zilla's production costs.

b. Further processed as a by-product and transferred to storage at net realizable value with a corresponding reduction of the manufacturing costs of Zilla.

c. Further processed and transferred to finished goods with joint cost being allocated between Zilla and Corma based on relative sales value at the split-off point.