The part I need help with is the "Briefly discuss the effects on the financial statements." which is requirement 3 part (b). I have put requirement 3 part (b) below please help.

Under the (production / Sales) method revenue is not recognized for the sale of the byproduct. Instead, the NRV of the (Byproduct / main product) is offset against the cost of the (byproduct / main product). This method is (less / more) consistent with the matching principle and is therefore the preferred method.

Under the ( production / sales) method, the NRV is recognized only upon sale.

%E16-29 (similar to) * Question Help There were no beginning inventories on September 1, 2017 Salty, Inc. is a producer of potato chips. A single production process at Salty, Inc., yields potato chips as the main product, as well as a byproduct that can be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs. For September 2017, the cost of operations is $480,000. Production and sales data are as follows: (Click the icon to view the production and sales data.) Read the requirements. Revenues Main product (potato chips) Byproduct (snack) $ 638,400 $ Data Table - X 638,400 70,000 0 638,400 708.400 Total revenues Cost of goods sold Total manufacturing costs Production (in pounds) 42,000 Sales (in pounds) Selling Price per pound 31,920 $ 20 7,000 $ 10 480,000 Potato Chips Byproduct 480,000 86.000 0 8,600 Deduct value of byproduct production Net manufacturing costs 480,000 394,000 94,560 115.200 Print Deduct main product inventory Done Cost of goods sold 299,440 364.800 $ 338,960 $ 343,600 Gross margin Click to select your answer(s) and then click Check Answer. %E16-29 (similar to) * Question Help There were no beginning inventories on September 1, 2017 Salty, Inc. is a producer of potato chips. A single production process at Salty, Inc., yields potato chips as the main product, as well as a byproduct that can be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs. For September 2017, the cost of operations is $480,000. Production and sales data are as follows: (Click the icon to view the production and sales data.) Read the requirements. Revenues Main product (potato chips) Byproduct (snack) $ 638,400 $ Data Table - X 638,400 70,000 0 638,400 708.400 Total revenues Cost of goods sold Total manufacturing costs Production (in pounds) 42,000 Sales (in pounds) Selling Price per pound 31,920 $ 20 7,000 $ 10 480,000 Potato Chips Byproduct 480,000 86.000 0 8,600 Deduct value of byproduct production Net manufacturing costs 480,000 394,000 94,560 115.200 Print Deduct main product inventory Done Cost of goods sold 299,440 364.800 $ 338,960 $ 343,600 Gross margin Click to select your answer(s) and then click Check