In the manufacture of its main product, the Snoring Company produces a by-product. Joint production cost incurred to the point of separation totals P200,000. The main product has a final market value of P400,000 and the by-product has a final market value of P20,000. There is no ending inventory. Required: A. a. Assume that no cost is assigned to the by-product. Any proceeds are treated as other income and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? b. Assume that no cost is assigned to the by-product. Any proceeds are treated as additional sales revenue and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? c. Assume that no cost is assigned to the by-product. Any proceeds are treated as deduction from the cost of goods sold and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? d. Assume that no cost is assigned to the by-product. Any proceeds are treated as deduction from the total production cost of the main product and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? B. If after separation, cost of P150,000 is incurred to complete the main product and P5,000 is incurred to complete the by-product: a. Assume that no cost is assigned to the by-product. Any proceeds are treated as other income and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? b. Assume that no cost is assigned to the by-product. Any proceeds are treated as additional sales revenue and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? C. Assume that no cost is assigned to the by-product. Any proceeds are treated as deduction from the cost of goods sold and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? d. Assume that no cost is assigned to the by-product. Any proceeds are treated as deduction from the total production cost of the main product and that the by-products marketing and administrative expenses are zero. Prepare the journal entry and compute the net income to be reported on the income statement? 55 55 C. If in assumption B, the management uses the reversal cost method in costing its by-product with an estimated profit of 10% of the selling price, prepare all necessary entries pertaining to the by-product and compute the net income to be reported on the income statement.