Smolak Farm is a producer of milk and byproducts. A single production process at Smolak 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 $$360,000.$ Production and sales data are as follows:

$($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.$)$

$\backslash$table$[[,\backslash$table$[[$Production$],[$Method$]]],[$Revenues$,],[$Main product: Milk,$],[$Byproduct: Ghee,$],[,$ Total revenues,$]]$

Cost of goods sold:

$$

$$

$$

$$

$$

Net manufacturing costs

$$

$\frac{?}{\text{b}\text{a}\text{r}}()$

Cost of goods sold $$

$$

Gross margin

$$

$$

Data table

$\backslash$table$[[,\backslash$table$[[$Production$],[($in gallons$)]],\backslash$table$[[$Sales $($in$],[$gallons$)]],\backslash$table$[[$Selling Price$],[$per Gallon$]]],[$Milk$,580,000,556,800,1\mathrm{.}20],[$Ghee$,$ byproduct,$18,000,16,920$$$,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 $1?$