The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February: Direct materials processed: Production: Sales: Cream Liquid skim Cream Liquid skim 750,000 gallons (727,500 gallons of good product) 442,500 gallons 285,000 gallons 421,500 at $110 per gallon 273,000 at $100 per gallon The cost of purchasing 750,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 727,500 gallons of good product was $2,280,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to liquid skim? $1,140,000 b. $1,368,000 c. $893,196 d. $1,386,800 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: Direct materials processed: Production: 2,500 liters (with 20% shrinkage) A 1,500 liters B 500 liters Sales: A B $15.00 per liter $10.00 per liter The cost of purchasing 2,500 liters of direct materials and processing it up to the split-off point to yield a total of 2,000 liters of good products was $4,500. There were no inventory balances of A and B. Product A may be processed further to yield 1,375 liters of Product 25 for an additional processing cost of $150. Product Z5 is sold for $25.00 per liter. What is Product Z5's estimated net realizable value at the split-off point? $34,375 b. $22,500 -$34,225 d. $22,350