Davenport Company buys Alpha-11 for $6 a gallon. At the end of distilling in Department A, Alpha-11 splits off into three products: Beta-1, Beta-2, and Beta-3. Davenport sells Beta-1 at the split-off point, with no further processing; it processes Beta-2 and Beta-3 further before they can be sold. Beta-2 is fused in Department B, and Beta-3 is solidified in Department C. Following is a summary of costs and other related data for the year ended November 30.

Department

(1) Distilling

(2) Fusing

(3) Solidifying

Cost of Alpha-11

$720,000

-0-

-0-

Direct labor

180,000

$337,500

$487,500

Manufacturing overhead

150,000

157,500

405,000

Products

Beta-1 Beta-2 Beta-3

Gallons sold

180,000

360,000

540,000

Gallons on hand at year-end

120,000

-0-

180,000

Sales

$225,000

$720,000

$1,063,125

Davenport had no beginning inventories on hand at December 1 and no Alpha-11 on hand at the end of the year on November 30. All gallons on hand on November 30 were complete as to processing. Davenport uses the net realizable value method to allocate joint costs.

Compute the following:

a. The net realizable value of Beta-1 for the year ended November 30.