Problem 2: The Blast Company uses a process cost system and present you with the following information. Units produced Units sold Selling price per unit Marketing and Administrative expenses Additional processing cost (Dept. 2) Expected gross profit Total Cost in Department 1 Main - Products 25,000 20,000 P 10 P 60,000 - By-Products 1,200 900 P 3 P 300 P 800 30% - P 150,000 The main products and by-product split-off at the end of Dept. 1. The by-product is transferred to Dept. 2 for additional processing. The main products need no additional processing. No beginning or ending work in process inventory exist. REQUIRED: Prepare income statements for the Blackberry Company if: A) by products are recognized when sold: 1) treated as other income 2) treated as a reduction from the cost of the main products. B) by-products are recognized when produced, using: 1) Net realizable value 2) Reversal method