Helen Company processes 30,000 litres of direct materials to produce two products, Zander and Ifso. ...

Helen Company processes 30,000 litres of direct materials to produce two products, Zander and Ifso. Zander, a byproduct, sells for $5 per litre, and Ifso, the main product, sells for $70 per litre. The following information is for July:

   Production   Sales   Beginning
Inventory   Ending
Inventory
Zander   5,500   4,950   0   550
Ifso   11,000   10,600   250   650

The manufacturing costs totalled $145,000; beginning inventory $3,000.

Required:
1.   Prepare a July income statement assuming that Helen Company recognizes the byproduct net realizable value when production is completed. The company uses FIFO for the inventory flow assumption.
2.   Prepare the journal entry to record the byproduct sales.