q 24

Slick Oil Manufacturing Company processes direct matenats up to the splitoff point where two products (X and Y) are obtained and sold. The following information was collected for the month of April Direct materials processed 10,000 litres (10,000 litres yield 9.500 litres of good product and 500 litres of shrinkage) Production X 4 940 litres Y 4,560 litres Sales X 4,750 at $150 per litre Y 4,000 at $100 per litre The cost of purchasing 10,000 litres of direct materials and processing it up to the splitoff point to yield a total of 9,500 litres of good products was $937,500 The beginning inventories totalled 120 litres for X and 30 litres for Y Ending inventory amounts reflected 310 litres of product X and 590 litres of product Y March costs were per unit were the same as April What is the approximate portion of the joint costs that should be allocated to products X and Y respectively, using a physical volume measure? O A. $530,000 and $470.000 B. $529 285 and 5445 715 O C. $461 858 and $513.142 OD. $487 500 and $450 000 O E. $513,142 and $461,858