Smolak Farm is a producer of milk and byproducts. A single production process at Smolak Farm yields mik 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 $$325,000.$ Production and sales data are

$($Click the icon to view the production and sales data $)$

There were no beginning inventories on October $1,2020.$

Read the requirements

Requirement $1.$ What is the gross margin for Smolak Farm under the production method and the sales method of byproduct accounting? $($Complete all input fields. Enter a $0$ for any. zero balances.$)$

Requirement $2.$ 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 renuirement $1?($Comnlete all innut fields. Fnter a $0$ for anv zern halances.

Requirement $2.$ 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 $1?($Complete all input fields. Enter a $0$ for any zero balances.$)$

Production

Method

Sales Method

Inventoriable costs $($end of period$)$:

Main product: Milk

Byproduct: Ghee

$$

Data table

$\backslash$table$[[,\backslash$table$[[$Production$],[($in gallons$)]],\backslash$table$[[$Sales $($in$],[$gallons$)]],\backslash$table$[[$Selling Price$],[$per Gallon$]]],[$Milk$,530,000,519,400$$$,1\mathrm{.}20],[$Ghee$,$ byproduct,$14,000,13,580$$$,0\mathrm{.}90]]$

Requirements

What is the gross margin for Smolak Farm under the production method and the sales method of byproduct accounting?

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 $1?$