Richardson Farm is a producer of milk and byproducts. A single production process at Richardson Farm yields milk as the main product, as well as ghee, a byproduct of milk production, that can be sold. Both products are fully processed by the splitoff point, and there are no separable costs. For the month of October 2020 , the cost of operations is $ 335,000 . Production and sales data are as follows and there were no beginning inventories on October 1, 2020:

- Data table Production (in gallons) 570,000 20,000 Sales (in Selling Price gallons) per Gallon 558,600 $ 1.20 18,800 $ 0.70 Milk Ghee, byproduct Requirements 1. What is the gross margin for Richardson Farm under the production method and the sales method of byproduct accounting? 2. What are the inventory costs reported in the balance sheet on October 31, 2020, for the main product and byproduct under the two methods of byproduct accounting in requirement 1