Happy Tree Lumber produces one main product (lumber) and one by-product (wood chips). The following are taken from its books at the end of the month. Selling price per pound of wood chips Pounds of wood chips produced Pounds of wood chips still on hand at the end of December Pounds of wood chips sold in January Lumber produced at the end of the year Listed below are the transactions during the month of December: Purchased $150,000 of raw material for cash. . $1 Requisitioned $150,000 of direct materials for production. The company paid direct labor costs of $20,000 for work done on the raw materials. The company applied $80,000 manufacturing overhead. 4,000 2,800 2,800 $246,000 Listed below is the transaction during the month of January: Recorded the sale of the wood chips. Recorded the cost of goods finished during December. The lumber and the wood chips are both finished and ready to be sold. The company sold all of the lumber for $300,000. Recorded the wood chips sold during December. Requirement: Prepare the journal entries using the (a) production method and (b) sales method. Use perpetual inventory system.