Seasons, Inc. is a producer of potato chips. A single production process at Seasons, 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 2017 , the cost of operations is $510,000. 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, 2017. Read the product inventory: Calculate the proportion of inventory first, then complete your calculation.) Briefly discuss the effects on the financial statements. Under the method revenue is not recognized for the sale of the byproduct. Instead, the NRV of the is offset against the cost of the This method is consistent with the matching principle and is therefore the preferred method. Under the method, the NRV is recognized only upon sale. Data table Requirements 1. What is the gross margin for Seasons, 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, 2017 , 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. Seasons, Inc. is a producer of potato chips. A single production process at Seasons, 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 2017 , the cost of operations is $510,000. 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, 2017. Read the product inventory: Calculate the proportion of inventory first, then complete your calculation.) Briefly discuss the effects on the financial statements. Under the method revenue is not recognized for the sale of the byproduct. Instead, the NRV of the is offset against the cost of the This method is consistent with the matching principle and is therefore the preferred method. Under the method, the NRV is recognized only upon sale. Data table Requirements 1. What is the gross margin for Seasons, 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, 2017 , 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