A second presentation for the realized value approach reflects by-product sales as Other Income. This method requires that an inventory account be established for the by-product processing costs;the inventory account will be removed from the balance sheet upon sale of the by-product. By-product revenue,net of additional costs of processing and disposal, is then shown on the income statement.This presentation allows management to recognize the monetary benefit realized from managing the costs and revenues related to by-product.The entries using the Other Income method for the incurrence of labor and overhead costs and sale of by-product for Gobble Gobble follow.