,

Inc. is a producer of potato chips. A single production process at

Quality,

Inc., yields potato chips as the main product, as well as a byproduct that can be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs. For September

2020,

the cost of operations is

$505,000.

Production and sales data are as follows:

please answer ALL parts

Quality, Inc. is a producer of potato chips. A single production process at Quality, Inc., yields potato chips as the main product, as well as a byproduct that can be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs. For September 2020 , the cost of operations is $505,000. Production and sales data are as follows: (Click the icon to view the production and sales data.) There were no beginning inventories on September 1, 2020. Read the requirements. \begin{tabular}{|lrrr|} \hline & Production (in pounds) & Sales (in pounds) & \multicolumn{2}{c|}{ Selling Price per pound } \\ \hline Potato Chips & 48,000 & 38,400$ & 18 \\ Byproduct & 8,100 & 7,500$ & 5 \\ \hline \end{tabular} 1. What is the gross margin for Quality, Inc., under the production method and the sales method of byproduct accounting? 2. What are the inventory costs reported in the balance sheet on September 30 , 2020 , for the main product and byproduct under the two methods of byproduct accounting in requirement 1 ? 3. Prepare the journal entries to record the byproduct activities under (a) the production method and (b) the sales method. Briefly discuss the effects on the financial statements