Salty, Inc. i 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 2017, the cost of potato chips. A single production tSalty, Inc., vields potato ch There were no beginning inventories on September 1, 2017 operations is $530,000. Production and sales Read the requirements data are as follows: Click the icon to view the production and sales data.) Production (in pounds) Sales (in pounds) Selling Price per Pound Potato Chips 36,480 48,000 24 Byproduct 8,000 6,500 5 Requirement 1. What i for Salty, In under the production method and the sales method of byproduct accounting? (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation.) Production Sales method method Revenues Main product (potato chips) Byproduct (snack) Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventorv Cost of goods sold Gross margin Requirement 2. What are the inventory costs reported in the balance sheet d September 30, 2017, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? (Enter a any cells with a zero balance.) Production Sales method method Main product (potato chips) Byproduct (snack) 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 not required.) Begin by preparing the entry to record the direct materials purchased and used in production during September. Debit Accounts Credit Record the entry for the cost of goods completed (for the byproduct) during September. Debit Accounts Credit Record the entry for the cost of goods completed (for the main product) during September Accounts Debit Credit Record the entry for sales of the byproduct during September Accounts Credit Debit the next step.) Record the entry for sales of the main product during September, (Do not record the cost, we will do this Accounts Debit Credit Record the entry for the cost of the main product sold during September Accounts Debit Credit Requirement 3b. Prepare the joumal 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 jounal entry table and leave the other cells blank if a journal entry is not required.) Begin by preparing the entry to record the direct materials purchased and used in production during September. Credit Accounts Debit Record the entry for the cost of goods completed (for the byproduct) during September. Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question. ? Record the entry for the cost of goods completed (for the main product) during September Accounts Debit Credit Record the entry for sales of the byproduct during September. Accounts Debit Credit n the next step.) Record the entry for sales of the main product during September. (Do not record the cost, we will do this Accounts Credit Debit Record the entry for the cost of the main product sold during September. Accounts Debit Credit Briefly discuss the effects on the financial statements. method revenue is not recognized for the sale of the byproduct. Instead, the NRV of the is offset against the cost of the consistent with the matching This method is Under the principle and is therefore the preferred method. Under the method, the NRV recognized only upon sale. Salty, Inc. i 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 2017, the cost of potato chips. A single production tSalty, Inc., vields potato ch There were no beginning inventories on September 1, 2017 operations is $530,000. Production and sales Read the requirements data are as follows: Click the icon to view the production and sales data.) Production (in pounds) Sales (in pounds) Selling Price per Pound Potato Chips 36,480 48,000 24 Byproduct 8,000 6,500 5 Requirement 1. What i for Salty, In under the production method and the sales method of byproduct accounting? (Enter a "0" for any cells with a zero balance. For the main product inventory: Calculate the proportion of inventory first, then complete your calculation.) Production Sales method method Revenues Main product (potato chips) Byproduct (snack) Total revenues Cost of goods sold Total manufacturing costs Deduct value of byproduct production Net manufacturing costs Deduct main product inventorv Cost of goods sold Gross margin Requirement 2. What are the inventory costs reported in the balance sheet d September 30, 2017, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? (Enter a any cells with a zero balance.) Production Sales method method Main product (potato chips) Byproduct (snack) 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 not required.) Begin by preparing the entry to record the direct materials purchased and used in production during September. Debit Accounts Credit Record the entry for the cost of goods completed (for the byproduct) during September. Debit Accounts Credit Record the entry for the cost of goods completed (for the main product) during September Accounts Debit Credit Record the entry for sales of the byproduct during September Accounts Credit Debit the next step.) Record the entry for sales of the main product during September, (Do not record the cost, we will do this Accounts Debit Credit Record the entry for the cost of the main product sold during September Accounts Debit Credit Requirement 3b. Prepare the joumal 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 jounal entry table and leave the other cells blank if a journal entry is not required.) Begin by preparing the entry to record the direct materials purchased and used in production during September. Credit Accounts Debit Record the entry for the cost of goods completed (for the byproduct) during September. Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question. ? Record the entry for the cost of goods completed (for the main product) during September Accounts Debit Credit Record the entry for sales of the byproduct during September. Accounts Debit Credit n the next step.) Record the entry for sales of the main product during September. (Do not record the cost, we will do this Accounts Credit Debit Record the entry for the cost of the main product sold during September. Accounts Debit Credit Briefly discuss the effects on the financial statements. method revenue is not recognized for the sale of the byproduct. Instead, the NRV of the is offset against the cost of the consistent with the matching This method is Under the principle and is therefore the preferred method. Under the method, the NRV recognized only upon sale