Select Manufacturing Co. produces three joint products and one organic waste byproduct. Assuming the byproduct can be sold to an outside party, what is the correct accounting treatment of the byproduct proceeds received by the firm?
a. Apply sale proceeds on a prorated basis to the joint products' sales.
b. Use the sale proceeds to reduce the common costs in the joint production process.
c. Apply the sale proceeds to the firm's miscellaneous income account.
d. Either "b" or "c" can be used.