Tasty, Inc. is a producer of potato chips. A single production process at Tasty yields potato chips as the

main product and a by-product (Bits O' Chips) that can be sold as a snack.Both products are fully processed by the split-off point. There are no additional processing costs.

For September, the total cost of manufacturing was $500,000. Production Sales Sales price/lb

Potato Chips 50,000 42,640 $16

Byproduct 10,000 6,500 $10

9. What is the gross profit for September under the Net Realizable Value method?10. What is the gross profit for September under the Manufacturing Cost Reduction method?11. What is the total inventory value at 9/30 under the Net Realizable Value method?12. What is the total inventory value at 9/30 under the Manufacturing Cost Reduction method?