21. Desert Dairy produces cheese as its main product. During the manufacturing process, whey is produced and sold as animal feed. Desert Dairy previously recognized the value of whey at the time of production, but the company has transitioned to recognizing whey at the time of sale. How will this change impact the income statement? a. Increase in total revenue b. Decrease in cost of goods sold c. Increase in cost of goods sold d. Answers A. and C. are correct. 22. Mt. Lemmon Manufacturing produces lumber used for housing in Tucson. Sawdust is considered a by-product, joint costs are $250,000, and additional information is provided below: The sawdust can be sold for $5 per log. What is the cost of goods sold if Mt Lemmon recognizes the by-product at the time of production? a. $58,500 b. $172,500 c. $168,750 d. $187,500 23. Which of the statements is true regarding the methods used to allocate joint costs? a. The physical output method works best when units vary in size and have different net realizable values. b. The net realizable value method is typically the least desirable since it does not reflect the inseparability of the joint production process. c. The physical output method is based on the ability of each product to "pay" for allocated costs. d. One con of the sales value at split-off method is that it could distort the relative profitability of some products