Ellison Inc. produces two main products (Product D24 and Product G68, and a byproduct. On June 1, the company had no beginning inventories. During the month, the company incurred $607,500 in joint costs, which were allocated to the main products using the physical measures method. The company also incurred $100,000 in selling and administrative expenses. Additional information for the month of June was as follows: Product	Unit produced	Units Sold	Selling price per unit
Product D24	54,000	43,200	$55.00
Product G68	81,000	68,850	$70.00
Byproduct	17,000	15,400	$4.00

Required

(A) Assuming that the company recognizes byproduct revenue at the time of sale, what is the total value of ending inventory?

(B) Compute the COGS for each of the main products and prepare an Income Statement assuming that the company recognizes byproduct revenue at the time of sale.

(C) Now assuming that the company recognizes byproduct revenue at the time of production, what is the total value of ending inventory?

(D) Compute the COGS for each of the main products and prepare an Income Statement assuming that the company recognizes byproduct revenue at the time of production.

(E) Describes the two methods for accounting for byproducts and discuss which method would be more appropriate to use and why.