Yum, Inc. is a producer of potato chips. A single production process at Yum, 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 2020, the cost of operations is $530,000. Production and sales data are as follows: Click the icon to view the production and sales data.) There were no beginning inventories Read the requirements. There were no beginning inventories on September 1, 2020. Read the requirements. Requirements n a a 1. What is the gross margin for Yum, Inc., under the production method and the sales method of byproduct accounting? 2. What are the inventory costs reported in the balance sheet on September 30, 2020, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? 3. Prepare the journal entries to record the byproduct activities under (a) the production method and (b) the sales method. Briefly discuss the effects on the financial statements. Print Done - X J Data table - X Selling Price per pound 24 Production (in pounds) Sales (in pounds) Potato Chips 42,000 32,760 $ Byproduct 8,600 8,000 $ Print Done 10 200 Requirement 1. What is the gross margin for Yum, under the production method and ory fit then complete your calculation) Main product (potano ches Ryck Total Production method method 766240 80000 (424] Cast of goods s Tal manufacturing cos 530000 530000 00000 Deduc vale of byproduct production Net manufacturing com 444000 530000 Deduct main product inventory Cost of goods sold Gorg product and byproduct under the bac mathods of byproduct accounting in requirement 17 (nera" any cote wit Deb Crede anty for the st of goods completed or the byproduct) during per Account D Crest Requirement 36. Prepare the joumal entry to record the byproduct activities under the sales method. (Record debts first, then credits Exclude explanations from journal entries Select "No joumal entry needed on the of the entry table and leave the other cells blank if a joumal entry is not required) Begin by preparing the entry to record the direct materials purchased and used in production during September Accounts Deb Credit Record the entry for the cost of goods completed (for the byproduct) during September Accounts Deb Credit Record the entry for the cost of goods completed (for the main product) during September Accounts Debit Credit Brety discuss the effects on the financial statements Under the method revenue is not recognized for the sale of the byproduct instad, the NRV of the therefore the preferred method offset agst the coat of the This method consent with the matching pinciple and Under method, the NRV is recognized only upon sale Submit quiz