Amy owns operates a fruit smoothie manufacturing operations, Nutri-smoothie. She processes fruit and adds it to yogurt and produces fruit smoothies, the main product. She sells the rinds and other waste to a recycling organization that turns the waste into compost. Neither product requires processing after the split-off point. Information for last month's operations follows:

Joint costs of smoothie production$11,800Smoothie production (in 1/2 L bottles)24,000Price per bottle$2Sales last month (bottles)22,000Compost production18,000 kgCompost sales 16,000 KgCompost revenue$2000

Required:

(a): What is Nutri-smoothie's gross margin for last month if the by-product value is recognized at the time of production?

(b): What is Nutri-smoothie's gross margin for last month if the by-product value is not recognized at the time of production?

(c): Calculate the inventory Value for both smoothie and compost on balance sheet under the method used in Part A and Part B.

Note: Please give the correct answer