The National purchases raw materials and processes them up to theSplit off point where two products (red pens and blue pens ) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The followinginformation was collected for the month of July : Raw materials : (yield is 40,000 red pens and 55,000 blue pens Production: red pens 30,000 Blue pens50,000 Sales: red pens25,000 at $0.09 per page Blue pens43,000 at $0.70 per casing Cost of purchasing raw materials and processing them up to the split-off point to yield 80,000 red pens and 30,000 blue pens is $7000. The beginning inventory for the red pens were $ 900

Required :prepare income statements for the 2 products