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Part $1$

Select Manufacturing Co$.$ produces three joint products and one organic waste byproduct. Assuming the byproduct can be sold to an outside$$ party, what is the correct accounting treatment of the$$ by$-$product proceeds received by the$$ firm?

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Part $1$

A$.$

Apply sale proceeds on a prorated basis to the joint$$ products' sales.

B$.$

Use the sale proceeds to reduce the common costs in the joint production process.

C$.$

Apply the sale proceeds to the$$ firm's miscellaneous income account.

D$.$

Either$"$b$"$ or$"$c$"$ can be used.