Yum Inc. is a producer of potato chips. A single production process at Yum Inc. yields potato

Question:

Yum Inc. is a producer of potato chips. A single production process at Yum Inc. yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are fully processed by the splitoff point, and there are no separable costs.
For September 2013, the cost of operations is $480,000. Production and sales data are as follows:

There were no beginning inventories on September 1, 2013.
REQUIRED
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, 2013, for the main product and byproduct under the two methods of byproduct accounting in requirement 1?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...