Accounting for by-product Potato skins are generated as a by-product in making potato chips and frozen hash browns at Zeena Foods. The skins are sold to restaurants for use in appetizers. Processing and disposal costs associated with by-product sales are $0.06 per pound of potato skins. During May, Zeena Foods produced and sold 135,000 pounds of potato skins for $20,250. In addition, the joint cost for producing potato chips and hash browns was $82,000; separate costs of production were $48,000. In May, 90 percent of all joint production was sold for $319,000. Non-factory operating expenses for May were $47,850. a. Prepare an income statement for Zeena Foods assuming that by-product sales are shown as Other Revenue and the processing and disposal costs for the by-product are shown as additional cost of goods sold of the joint products. Note: Do not use a negative sign with your answers. Zeena Foods Income Statement For Month Ended May 31 Sales revenue (joint products) Cost of goods sold: Joint cost Separate costs By-products Gross profit $ 0 $ 0 0 0 $ 0 Non-factory expenses 0 Income from operations $ 0 Other revenues (by-product sales) 0 Income before taxes $ 0 b. Prepare an income statement for Zeena Foods assuming that the net realizable value of the by-product is shown as Other Income. Note: Do not use a negative sign with your answers. Zeena Foods Income Statement For Month Ended May 31 Sales revenue (joint products) $ 0 Cost of goods sold 0 Gross profit $ 0 Non-factory expenses 0 Income from operations $ 0 Other income (by-product sales) Income before taxes $ 0 0 c. Prepare an income statement for Zeena Foods assuming that the net realizable value of the by-product is subtracted from the joint cost of the main products. Note: Do not use a negative sign with your answers. Zeena Foods Income Statement For Month Ended May 31 Sales revenue $ 0 Cost of goods sold 0 Gross profit $ 0 Non-factory expenses 0 Income before taxes $ 0