Following is information about log production at Mile High Lumber Mill. Joint costs are $600,000.

The lumber can be sold for $3 per board foot. The scraps can be sold for $10 per log.

REQUIRED
A. Create an income statement using the by-product value recognized at the time of sale method.
B. Create an income statement using the by-product value recognized at the time of productionmethod.

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Lumber (board feet) Scraps (per log Production 300,000 1,000 logs Sales 270,000 900 logs Inventory 30,000 100 logs