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 vear ended November 30 1) Distilling $720,000 180,000 150,000 (2) Fusing Department Cost of Alpha-11 Direct labor Manufacturing overhead (3) Solidifying $337,500 157,500 $487,500 405,000 Products Gallons sold Gallons on hand at vear-end Sales Beta-2 540,000 180,000 S225,000 S720,000 S1,063,125 Beta-1 180,000 360,000 120,000 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