The Olympia Recycling Company (ORC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. ORC can produce 20 table covers, 79 chair covers and 9 pounds of package filler from 100 pounds of bottles. (Click the icon to view additional information.) Read the requirements. Requirements 1. Assume that ORC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for ORC ? 2. Assume that ORC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the sales method. What is the ending inventory cost for each product and gross margin for ORC? Now complete the statement below for ORC. (Do not round intermediary calculations. Only rour 3. Discuss the difference between the two methods of accounting for byproducts, focusing on what conditions are necessary to use each method. The Olympia Recycling Company (ORC) purchases old water and soda bottles and recycles them to produce plastic covers for outdoor furniture. The company processes the bottles in a special piece of equipment that first melts, then reforms the plastic into large sheets that are cut to size. The edges from the cut pieces are sold for use as package filler. The filler is considered a byproduct. ORC can produce 20 table covers, 79 chair covers and 9 pounds of package filler from 100 pounds of bottles. (Click the icon to view additional information.) Read the requirements. Requirements 1. Assume that ORC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the production method. What is the ending inventory cost for each product and gross margin for ORC ? 2. Assume that ORC allocates the joint costs to table and chair covers using the sales value at splitoff method and accounts for the byproduct using the sales method. What is the ending inventory cost for each product and gross margin for ORC? Now complete the statement below for ORC. (Do not round intermediary calculations. Only rour 3. Discuss the difference between the two methods of accounting for byproducts, focusing on what conditions are necessary to use each method