Thin Skins Corporation engages in a manufacturing process that uses cowhide to produce three outputs (leather, suede, dog chews). Leather and suede are considered main products. Dog chews are a by-product. During a recent month, the following events occurred:

i. Produced and sold 200 units of leather and 100 units of suede. Produced 25 units of dog chews.

ii. Recorded sales revenue of $35,000 from sales of leather and suede. The cost of sales before accounting for the by-product was $18,000.
iii. Incurred $100 to process the 25 units of dog chews to completion. These costs are charged as they are incurred against any by-products' sales. (None of these by-product costs are kept in inventory at the end of the period.)
iv. Received $550 in revenue from the sale of the 25 units of dog chews.
Prepare a statement showing, in parallel columns (as in Illustration 8-10

), the sales revenue, other income, cost of goods sold, other relevant data, and gross margin that would be reported for each of the two methods of by-product accounting described in the text.