Through its processing of logs for $$1,000,000,$ Sonimad Sawmill, Inc. $($SSI$)$ produces bark as a byproduct. SSI found out it can sell the bark to Craft World, Inc., a crafting company. Minimal costs will be incurred to gather the bark and ship boxes of bark to Craft World. SSI wil send an invoice to Craft World each month for $$5,000$ for the bark. Craft World will pay the invoice within $30$ days.

a$.$ Using the production byproduct method, answer the questions below:

i$.$ When is $($are$)$ the journal entry $($entries$)$ necessary?

ii$.$ Record the journal entry $($entries$).$

iii. Is inventory recorded on the balance sheet?

iv$.$ Is revenue recorded directly or indirectly on the income statement?

v$.$ How much is the amount of joint costs allocated?

b$.$ Using the sales byproduct method, answer the questions below:

i$.$ When is $($are$)$ the journal entry $($entries$)$ necessary?

ii$.$ Record the journal entry $($entries$).$

iii. Is inventory recorded on the balance sheet?

iv$.$ Is revenue recorded directly or indirectly on the income statement?

v$.$ How much is the amount of joint costs allocated?