Practice Problem 11.9 (Continued from Demonstration Problem 5) Superior Refinery produces oil products in a joint production process. For the month of October, $450,000 of materials, labor, and overhead were added to produce the three main products: M1, M2, and M3. The sale values were available right after the split-off point. Superior Refinery also produced a by-product, B, in October that was sold for $30,000. The following diagram shows the process. M1 Sales value $200,000 Joint costs $450,000 M2 Sales value $300,000 M3 Sales value $500,000 B Sales value $30,000 Required: Discuss the accounting treatments for the by-product