Potato skins are generated as a by-product in making potato chips and frozen hash browns at Fit Food. The skins are sold to restaurants for use in appetizers. Processing and disposal costs associated with by-product sales are \(\$ 0.08\) per pound of potato skins. During October, Fit Food produced and sold 155,000 pounds of potato skins for \(\$ 27,900\). In addition, the joint cost for producing potato chips and hash browns was \(\$ 90,000\); separate costs of production were \(\$ 55,000\). In October, 85 percent of all joint production was sold for \(\$ 335,000\). Non-factory operating expenses for October were \(\$ 58,000\).

a. Prepare an income statement for Fit Food assuming that the net realizable value of the by-product is subtracted from the joint cost of the main products under the Net Realizable Value Approach.

b. Prepare an income statement for Fit Food assuming that by-product sales are shown as Other Revenue and the processing and disposal costs for the by-product are shown as additional cost of goods sold of the joint products under the Realized Value Approach.

c. Prepare an income statement for Fit Food assuming that the net realizable value of the by-product is shown as Other Income under the Realized Value Approach.