Requirement 2. What are the inventory costs reported in the balance sheet on September 30, 2017, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? (Enter a "0" for any cells with a zero balance.)

Requirement 3a. Prepare the journal entries to record the byproduct activities under the production method. (Record debits first, then credits. Exclude explanations from journal entries. Select "No journal entry needed" on the first line of the journal entry table and leave the other cells blank if a journal entry is not required.)

Requirement 3b. Prepare the journal entry to record the byproduct activities under the sales method. (Record debits first, then credits. Exclude explanations from journal entries. Select "No journal entry needed" on the first line of the journal entry table and leave the other cells blank if a journal entry is not required.)

Briefly discuss the effects on the financial statements. PICK ONE OF THE BOLD OPTIONS

Under the (production, sales) method revenue is not recognized for the sale of the byproduct. Instead, the NRV of the (byproduct, main product) is offset against the cost of the (byproduct, main product). This method is (less, more) consistent with the matching principle and is therefore the preferred method.

Under the (production, sales) method, the NRV is recognized only upon sale.

Tasty, Inc. is a producer of potato chips. A single production process at Tasty, Inc., There were no beginning inventories on September 1, 2017. 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 Read the requirements. separable costs. For September 2017, the cost of operations is $525,000. Production and sales data are as follows: (Click the icon to view the production and sales data.) * Data Table