Acme Company makes a product and produces a by-product. In the current month the costs in the Mixing Department were:

Materials $80,000

Labor $5,000

Overhead $10,000

During the month 100,000 pounds of materials were processed. Of this, 90,000 of main product were transferred to the next department, and 10,000 pounds of by-product were recovered. The by product can be sold for .02 per pound.

What is the journal entry to account for the by-product if they treat the market value of the byproduct as misc. income?

Date	Account	Debit	Credit
1/31/xx	By product inventory
	misc. income

What is the journal entry if they treat the market value of the by-product as a reduction to the work in process of the current department (Mixing)?

Date	Account	Debit	Credit
1/31/xx

What is the cost per unit of the main product if they treat the market value of the byproduct as misc. income? _____________________

What is the cost per unit of the main product if they treat the market value of the by-product as a reduction to the work in process of the current department (Mixing) ________________________