Making a journal entry—by-product LO₅ Gotham City Metals manufactures tin. During the process, a by-product, scrap metal, is obtained and placed in stock. The estimated sales value of the scrap metal produced during the month of April is $2,000.Assume that the value of the by-product reduces 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