Exercise 4 A single production process at Crispy, 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 split off point, and there are no separable costs. For September 2017, the cost of operations is $520,000 Production Sales SP unit Main 52000 42640 16 product=Potato chips By product 8500 6500 10 There were no beginning inventories on September 1, 2014. 1. What is the gross margin for Tasty, 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, 2014, for the main product and byproduct under the two methods of byproduct accounting in requirement 1? Accounting for a main product and a byproduct. (Cheatham and Green, adapted) Tasty, Inc., is a producer of potato chips. A single production process at Tasty, 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 2014, the cost of operations is $500,000. Production and sales data are as follows