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4) Beverage Drink Company processes direct materials up to the split-off point where two products, A and B, are obtained. The following information was collected
4) Beverage Drink Company processes direct materials up to the split-off point where two products, A and B, are obtained. The following information was collected for the month of July: The cost of purchasing 3,000 liters of direct materials and processing it up to the split-off point to yield a total of 2,550 liters of good products was $7,000. There were no inventory balances of A and B. Product A may be processed further to yield 375 liters of Product Z5 for an additional processing cost of $200. Product Z5 is sold for $45 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 1,900 liters of Product W3 for an additional processing cost of $280. Product W3 is sold for $50 per liter. There was no beginning inventory and ending inventory was 25 liters. If Product Z5 and Product W3 are produced, compute the expected sales values of production, for Z5 and W3 respectively? 5) Cola Drink Company processes direct materials up to the split-off point where two products, A and B, are obtained. The following information was collected for the month of July: The cost of purchasing 3,500 liters of direct materials and processing it up to the split-off point to yield a total of 2,800 liters of good products was $4,500. There were no inventory balances of A and B. Product A may be processed further to yield 2,000 liters of Product Z5 for an additional processing cost of $190. Product Z5 is sold for $70.00 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 575 liters of Product W3 for an additional processing cost of $325. Product W3 is sold for $75 per liter. There was no beginning inventory and ending inventory was 25 liters. Compute Product Z5's estimated net realizable value at the split-off point
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