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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

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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: Direct materials processed: 3000 liters (with 15% shrinkage) Production: A B 600 liters 1950 liters A Sales: $35.00 per liter B $30.00 per liter The cost of purchasing 3000 liters of direct materials and processing it up to the split-off point to yield a total of 2550 liters of good products was $7500. There were no inventory balances of A and B. Product A may be processed further to yield 500 liters of Product Z5 for an additional processing cost of $170. Product Z5 is sold for $25 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 1870 liters of Product W3 for an additional processing cost of $325. Product W3 is sold for $35 per liter. There was no heginning inventory and ending inventory was 25 liters. split-off point to yield a total of 2550 liters of good products was $7500. There were no inventory balances of A and B. Product A may be processed further to yield 500 liters of Product Z5 for an additional processing cost of $170. Product Z5 is sold for $25 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed further to yield 1870 liters of Product W3 for an additional processing cost of $325. Product W3 is sold for $35 per liter. There was no beginning inventory and ending inventory was 25 liters. Using sales value at splitoff point, allocate the joint costs to product A and B

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