Making a journal entry for a by-product that is treated as a reduction in the main product

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Making a journal entry for a by-product that is treated as a reduction in the main product cost. The manufacturing process in the Cutting Department of the Baum Company results in a by-product. The company accumulates the byproduct and periodically sells it. During the month of June 19X6, a quantity of the by-product with an estimated sales value of $900 was recovered. The company treats the by-product as a reduction in the cost of production completed during the current month. The total cost of the 20,000 units completed during the month was $48,000 before considering the by-product.

a. Give the general journal entry to record the removal of the by-product from factory operations and its storage in inventory.

b. Calculate the revised cost per unit of the goods transferred out of the department during the month.

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