Lares Confectioners, Inc., makes a candy bar called Rey, which sells for \(\$ .50\) per pound. The manufacturing process also yields a product known as Nagu. Without further processing, Nagu sells for \(\$ .10\) per pound. With further processing, Nagu sells for \(\$ 30\) per pound. During the month of April, total joint manufacturing costs up to the point of separation consisted of the following charges to work in process:

Required:
Prepare the April journal entries for Nagu, if Nagu is:

(a) Transferred as a by-product at sales value to the warehouse without further processing, with a corresponding reduction of Rey's manufacturing costs.

(b) Further processed as a by-product and transferred to the warehouse at net realizable value, with a corresponding reduction of Rey's manufacturing costs.

(c) Further processed and transferred to finished goods, with joint costs being allocated between Rey and Nagu based on relative sales value at the split-off point.

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Raw Materials ..$150,000 Direct Labor.. 120,000 Factory Overhead. 30,000 Production for the month aggregated 394,000 pounds of Rey and 30,000 pounds of Nagu. To complete Nagu during the month of April and obtain a selling price of $.30 per pound, further processing of Nagu during April would entail the following ad- ditional costs: Raw Materials ..$2,000 Direct Labor 1,500 Factory Overhead. 500