Martinez Metals manufactures tin. During the process, a by-productscrap metal-is obtained and placed in stock. The estimated
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Martinez Metals manufactures tin. During the process, a by-productscrap metal-is obtained and placed in stock. The estimated sales value of the scrap metal produced during April is $2,000. Assume that the value of the by-product is treated as a reduction in production cost. Make the journal entry for April to record the following:
a. Placing of the scrap metal in stock
b. Sale of one-half of the scrap metal for $850, on account
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