West-Coast Oceanic Water (WOW) desalinates and bottles sea water. The desalinated water is in high demand from a large group of environmentally conscious people on the west coast of Canada. During March, WOW processes 1,400 litres of sea water and obtains 1,400 litres of drinking water and 70 kilograms of sea salt (the rest of the sea water evaporates in the desalinization process). Processing the 1,400 litres of water costs WOW $1,700. WOW sells 1,260 litres of the desalinated water in 2-litre containers for $9 per container. In addition, WOW sells 60 kilograms of sea salt for $1.40 per kilogram. Due to the relatively small proportion of sea salt, WOW has decided to treat it as a byproduct. Required Requirements 1 and 2. Assuming WOW accounts for the byproduct using the production method, what is the inventoriable cost for each product and WOW's gross margin? Calculate the gross margin and gross margin percentage for West-Coast Oceanic Inc. under the production method, and then for the sales method. (Only complete the necessary boxes, do not enter "0". Round interim calculations to the nearest cent. Round final answers to the nearest whole dollar. Round the gross margin percentage to two decimal places.) Production Method Sales Method Revenues Main product Byproduct Total revenues Cost of goods sold Gross margin Gross margin percentage % %Now we can calculate the inventoriable cost for each product under the production method and the sales method. (Enter an amount in each input box. If an amount is zero, enter "0".) Production Method Sales Method Main product Byproduct Requirement 3. Discuss the difference between the two methods of accounting for byproducts. The method recognizes the byproduct cost as inventory . This method sets the cost of the byproduct inventory equal to its V. When the byproduct is sold, inventory is through the income statement. On the other hand, the method associates of the production cost with the main product. Under this method, the byproduct has inventoriable cost and is recognized